Question

In the context of managing fixed-quantity inventory systems, if the on-hand quantity is 700 units, the number of scheduled receipts is 150 units, and the number of backorders is 100 units, the inventory position (IP) would be _____.

Answer 1

The inventory position (IP) would be 700 units

Step-by-step explanation:

The fixed-quantity inventory systems is about the maximum and minimum inventory levels are fixed.

The inventory is check every set day; and whenever the inventory is lower then the fixed-quantity set, it will be topped up by new order placed.

The inventory position of this system is always the real in stock, or in this scenario is the on hand quantity, 700 units.