Question

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?

Answer 1

an order of 40 units should be placed at week 4 to get 40 unit by week 5 and complete 300 items.

Step-by-step explanation:

300 units required in week 5

We will have 20 + 120 + 120 = 260 units by week 5 from the stock and scheduled receipts.

We need 40 more, given lead time = 1 week.

Therefore, an order of 40 units should be placed at week 4 to get 40 unit by week 5 and complete 300 items.