Shopska Co holds an item of inventory with the following consumption rates and lead times:

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answerhappygod
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Shopska Co holds an item of inventory with the following consumption rates and lead times:

Post by answerhappygod »

MaximumMinimum -
Daily consumption58 units32 units

Supplier lead time9 days4 days -
The economic order quantity for this item of inventory is 260 units and a buffer inventory of
120 units is maintained at all times.
What is the maximum number of units of this item that the business could hold?
A. 902 units
B. 774 units
C. 642 units
D. 514 units
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