Scenario 9.2
Shipments of Product X from a plant to a wholesaler are made in lots of 600. The wholesaler's average demand for X is 100 units per week. The lead time from the plant to the wholesaler is 4 weeks. The wholesaler pays for the shipments when they leave the plant.
-Refer to Scenario 9.2. Which of the following situations results in the wholesaler's total cycle plus pipeline inventories amounting to 550 units?
A) The plant shipment lot size of 400 and plant-to-wholesaler lead time of 2 weeks
B) The plant shipment lot size of 500 and plant-to-wholesaler lead time of 3 weeks
C) The plant shipment lot size of 400 and plant-to-wholesaler lead time of 3 weeks
D) The plant shipment lot size of 600 and plant-to-wholesaler lead time of 4 weeks

Question

Quizplus · Accepted Answer

The Answer of Scenario 9.2
Shipments of Product X from a plant to a wholesaler are made in lots of 600. The wholesaler's average demand for X is 100 units per week. The lead time from the plant to the wholesaler is 4 weeks. The wholesaler pays for the shipments when they leave the plant.
-Refer to Scenario 9.2. Which of the following situations results in the wholesaler's total cycle plus pipeline inventories amounting to 550 units?
A) The plant shipment lot size of 400 and plant-to-wholesaler lead time of 2 weeks
B) The plant shipment lot size of 500 and plant-to-wholesaler lead time of 3 weeks
C) The plant shipment lot size of 400 and plant-to-wholesaler lead time of 3 weeks
D) The plant shipment lot size of 600 and plant-to-wholesaler lead time of 4 weeks

Scenario 9.2 Shipments of Product X from a Plant to a Wholesaler