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Question
Scenario 9.1
Shipments of Product A from a distribution center to a retailer are made in lots of 350. The retailer's average demand for Product A is 75 units per week. The lead time from distributor to retailer is 3 weeks. The retailer pays for the shipments when they leave the distributor. The distributor has agreed to reduce the lead time to 2 weeks if the retailer will purchase quantities of 400 per shipment instead of 350 units per shipment.
Refer to Scenario 9.1. The net impact on the retailer will be:
A) no net change in average cycle and pipeline inventories.
B) a net average increase in cycle and pipeline inventories of 50 units.
C) a net average decrease in cycle and pipeline inventories of 75 units.
D) a net average decrease in cycle and pipeline inventories of 50 units.
Answer
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Related questions
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Q:
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Q:
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Construct a 3-sigma and R-chart for the length in centimeters of a part from the following table. Sample #
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Observation 2
Observation 3
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0.499
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0.496
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Q:
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LABOR
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Q:
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Machine 2 1
14
6 2
11
12 3
16
14 4
12
8 5
22
9 6
13
15 7
10
12 8
8
13