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Assuming customers order in relatively predicted cycles, this is the stock necessary to fill orders through the time cycle. The cycle may be determined by
Assuming customers order in relatively predicted cycles, this is the stock necessary to fill orders through the time cycle. The cycle may be determined by a number of factors. Two key factors may include the time necessary to produce the product plus the transit time required to transport the freight to the customer. Suppose it takes 5 days to produce after an order is placed. In addition, it takes 4 days to transport because the carrier utilizes intermodal services to reduce transportation costs. In such a case, the producer would need __ days of inventory to satisfy customer demand from the time the shipment arrives until the next one arrives. a. None of the options b. 8 c. 4 d. 9 e. 5
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