By how much should the level production strategy increase its monthly output of units in order to meet the requirements of the retailer and minimize overall inventory levels?

There are 10,000 units in stock for the beginning of January, and maximum inventory holding is 19,000 units. Sales are recorded at the end of the month.

A firm is reviewing its demand plan for the following cycle. Its facility operates a level production strategy.

The initial pan is show in the following figure:

Procurement receives a communication from one of its retailers that it is planning a promotional event in July. The retailer forecasts that it will require an additional 20,000 units.

By how much should the level production strategy increase its monthly output of units in order to meet the requirements of the retailer and minimize overall inventory levels?
A . 3,000
B . 2,000
C . 1,429
D . 2,572

View Answer

Answer: B

Explanation:

Evaluating multimodal shipment options can provide a balance between speed and cost, potentially mitigating delays from the storm while staying within budget. This approach allows for flexible logistics solutions, combining various transport modes to achieve timely delivery.

Reference: Multimodal transportation is often used to address logistical challenges and enhance supply chain resilience.