Which number should be placed in the spot presently filled with the X? Item ABC-Level
1
2
3
4
Gross Requirements
40
65
35
10
Schedule Receipts
60
Projected on Hand Inventory
70
30
25
20
10
Net Requirements
Planned Order Releases
X
Q = 30; LT = 2; SS = 10
A)10
B)15
C)30
D)60

Question

Quizplus · Accepted Answer

The net requirement for period 1 is calculated as Gross Requirements - Projected on Hand Inventory - Schedule Receipts + Safety Stock. For period 1: 40 - 70 + 10 = -20, so no net requirement. For period 2: 65 - 30 + 10 = 45, so a planned order release of 30 (Q) is needed to cover the net requirement.

Which Number Should Be Placed in the Spot Presently Filled