Question

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.4. Refer to the scenario above. What is the total of the wholesaler's current cycle plus pipeline inventories

Answer 1

Answer: 1000 is the total wholesaler current cycle plus pipleline inventories.

Explanation: product X from a plant to a Wholesaler are made in lots of 600. Average demand of X is 100 units per week.

lead time from the plant is 4 weeks, So we have 100x4 =400

600+400=1000