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ISM INTE Question # 4 Topic 1 Discussion

INTE Exam Topic 1 Question 4 Discussion:
Question #: 4
Topic #: 1

A supply manager is reviewing safety stock for a particular unit. The unit is small, Inexpensive, non-perishable, and easily stored, but is critical to the firm's manufacturing process. The following information is known about this unit:

Maximum lead time = 8 Days

Average lead time = 3 Days

Maximum daily usage = 6,000 Units

Average daily usage = 4,000 Units

What is the maximum safety stock that should be maintained for this unit?


A.

12,000


B.

10,000


C.

36,000


D.

48,000


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