Question

If McKamie Hobbies, Inc. has a safety stock of 70 units and the average weekly demand is 14 units, how many days can be covered if the shipment from the supplier is delayed ?

		5 days
		35.days
		42 days
		70 days

Answer 1

Safety Stock = 70 Units

Average Weekly Demand = 14 Units

Number of weeks that can be covered if the shipment from the supplier is delayed = Safety Stock / Average Weekly Demand

Number of weeks that can be covered if the shipment from the supplier is delayed = 70 Units / 14 Units = 5 Weeks

Number of days that can be covered if the shipment from the supplier is delayed = 7 Days * Number of weeks that can be covered if the shipment is delayed

Number of days that can be covered if the shipment from the supplier is delayed = 7 Days * 5 Weeks = 35 Days