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For a Given Item the Lead Time Is 1 Week

Question 8

Multiple Choice

For a given item the lead time is 1 week, the on hand inventory is 50 units, demand is 20 units per week, safety stock is set at 3 weeks supply and the item is ordered every 2 weeks. The order quantity should be:


A) 70 units
B) 60 units
C) 50 units
D) 40 units
E) 120 units

Correct Answer:

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