In a simple inventory system, the inventory is reviewed periodically everyday, t
ID: 3680984 • Letter: I
Question
In a simple inventory system, the inventory is reviewed periodically everyday, the minimum inventory level is 500 items, and the maximum inventory level is 800 items. At the beginning of the day, the inventory level is 510. The demand of the day is 830. What is the inventory level at the end of the day? Is there a back order or not In a simple inventory system, the inventory is reviewed periodically everyday, the minimum inventory level is 500 items, and the maximum inventory level is 800 items. At the beginning of the day, the inventory level is 510. The demand of the day is 830. What is the inventory level at the end of the day? Is there a back order or notExplanation / Answer
As beginning of the day inventory level is 510, we can extended it to 800 items.
We will extend items from 510 to 800 as we have demand of the day is 830
As maximum inventory level is 800, so we can fulfill only 800 orders for the day
And 30 orders will be the back orders.