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A coffee shop manages its inventory of cup sleeves using a continuous review system with a reorder point of 20 packs and an order quantity
A coffee shop manages its inventory of cup sleeves using a continuous review system with a reorder point of 20 packs and an order quantity of 60 packs. The lead time for replenishing the inventory is fixed at 1 day. At the end of day 0, the coffee shop has 40 packs of cup sleeves on hand, and there is no on-order inventory or backorder. The coffee shop's demand for the next five days is as follows: 23, 11, 16, 17, and 19 packs, respectively. What will be the coffee shop's inventory position at the end of day 5?
a. 14
b. 33
c. 53
d. 74
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