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At what level of inventory would replenishment order issued

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Reference no: EM133100589

Question - A domestic appliance retailer with multiple outlets sells a popular toaster known as the Auto crisp 2000, for which the following information is available:

Average sales 75 per day

Maximum sales 95 per day

Minimum sales 50 per day

Lead time 12-18 days

Reorder quantity 1,750

Required -

1. Based on the data above, at what level of inventory would a replenishment order be issued?

A. 600 units

B. 1,125 units

C. 1,710 units

D. 1,750 units

2. Based on the data above, what is the maximum inventory level?

A. 1,750 units

B. 2,275 units

C. 2,860 units

D. 2,900 units

Reference no: EM133100589

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