Question

9. A coffee shop utilizes a periodic review system with a base stock level of 3000 cups. They just counted stock and found 2200 cups in their stock room. If they place an order now, how many cups should they order?

Question 9 options:

3000

2300

1610

800

Question 10 (2 points)

10. Safety stock is a function of desired customer service level, lead time and _______

Question 10 options:

Average demand

Demand variation

Forecasted demand

None of the above

Answer 1

first of all let me define safety stock it can be stated as additional quantity of an item held in the inventory or you can say it as buffer stock.Supplies mantain additional stock so that at needy times they can use this quantity to meet the expected demands on expected time.

for question 1:

Base stock level that they mantain is of 3000 but whil counting they found it to be 2200 ,hence since no other information about daily uses and days are given it could be taken as they will have to order 3000 cups.Since all time they need to mentain 3000 as per given information thehy need to order 3000 cups.

question no 10

Its forcasted Demanded

It refer to the process of prediction future demand hence the answer will be the above.