Calculate a consumables order and explain what the number means.

Instruction: Show your stock and order calculations, then explain the practical implication for the next delivery.

Context:

Fictional inventory exercise for nonclinical paper cups: nine sealed packs contain 100 cups each, but one complete pack is damaged and unavailable. There are also 40 usable loose cups. There are no reservations, backorders, or orders already placed. Planning demand is 240 cups per working day; supplier lead time is three working days; safety stock is 180 cups. Office rule: reorder when usable inventory position is at or below lead-time demand plus safety stock, then order up to an inventory-position target of 1,800 cups. Orders must be complete 100-cup packs. A purchase requires the manager's approval. Demand and lead time are planning assumptions, not guarantees.

Updated

Official answer available

Read the opening below, then unlock the full answer and practical guidance.

I would count 840 usable cups: eight undamaged packs give 800, plus 40 loose cups...

Related Questions