Question

Product X: It is week 1 and there are currently 20 units in stock. We need 300 units at the start of week 5. If there are scheduled receipts planned for week 3 and week 4 of 120 each. Product X has a lead time of 1 week.

When and how large of an order should be placed to meet the requirement of 300?

A) Week 1, 300 units

B) Week 1, 40 units

C) Week 5, 40 units

D) Week 4, 40 units

E) Week 4, 300 units

Answer 1

The amount of order that should be placed should be in the week four and for forty units.

Answer: Option D

Step-by-step explanation:

The targets that are to be met by the company should be properly planned keeping in mind the time for meeting the order and the units to be produced. The working capacity of the labor should also be kept in mind.

For producing three hundred units of the commodity X by the end of the fifth week, the order that should be placed in the fourth week. The order that should be placed for forty units. This will help to achieve the target that is to be achieved.