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If you use 400 units as order quantity and weekly demand is 100 units, what will be the time between orders in weeks?

User Delonte
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1 Answer

5 votes

Answer: 4 weeks

Step-by-step explanation:

The following can be gotten from the question:

Weekly demand = 100 units

Since there are 52 weeks in a year, therefore, annual demand will be:

= 100 × 52 = 5200 units

Order quantity = 400 units

Total orders = 5200 / 400 = 13

The time between orders in weeks will then be:

= 52 / 13

= 4 weeks

User Guarana Joe
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5.5k points