Assume a firm implements an order-up-to inventory model with an order-up-to level of 10. The lead time

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Assume a firm implements an order-up-to inventory model with an order-up-to level of 10. The lead time is two periods and demand is normally distributed. Which of the following is definitely not true? 

a. The last order was 12. 

b. The backorder in the previous period was 14. 

c. There are 11 units in on-hand inventory. 

d. Demand in the previous period was 13. 

e. There are 12 units on order and 2 units are backordered. 

f. There are 2 units on order and 8 units on hand.

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Operations Management

ISBN: 9781260547610

2nd International Edition

Authors: Gerard Cachon, Christian Terwiesch

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