Question 11
You oversee the inventory management of gear assemblies in a manufacturing facility. The particulars of the inventory are as follows:
Starting Inventory: 100 units
Daily Usage: 5 units
Lead Time: 10 days
Safety Stock: 20 units
Based on the above data, answer the given subquestions.
Based on this information, At what inventory level should you trigger a re-order for gear assemblies?
Initiate a re-order when the inventory level drops to 70 units
Initiate a re-order when the inventory level drops to 50 units
Initiate a re-order when the inventory level drops to 30 units
Initiate a re-order when the inventory level drops to 15 units