Respuesta :
Answer:
Option (B) is correct.
Explanation:
Given that,
Lot size = 600
Average demand per week = 100 units
Lead time = 4 weeks
Cycle inventory is determined by dividing the lot size by 2. It is calculated as follows:
= Lot size ÷ 2
= 600 ÷ 2
= 300 units
Pipeline inventories is determined by the product of average demand and lead time from plant to wholesaler.
Pipeline inventories:
= Average demand × Lead time
= 100 × 4
= 400 units
Hence, Total cycle + Pipeline inventories = 300 units + 400 units
= 700 units
Now, if the plant reduces its lead time from 4 to 2 weeks and lot size remains the same, then
Cycle inventory:
= Lot size ÷ 2
= 600 ÷ 2
= 300 units
Pipeline inventories:
= Average demand × Lead time
= 100 × 2
= 200 units
Hence, New Total cycle + Pipeline inventories = 300 units + 200 units
= 500 units
