If the order size was 1,000 kilograms of resin, what would be the average inventory level?
A)50 kilograms
B)200 kilograms
C)500 kilograms
D)800 kilograms
E)1,000 kilograms

Question

Quizplus · Accepted Answer

The average inventory level can be calculated by dividing the order size by two (assuming that the inventory level varies linearly from zero to the maximum level during the cycle). Therefore, 1,000 kilograms of resin divided by two is 500 kilograms, which is the average inventory level.

If the Order Size Was 1,000 Kilograms of Resin, What