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The
item has an independent demand and a safety stock of 40 is
maintained. Order quantity = 70, Lead time = 4 weeks, safety
stock = 40, Receipts for the 2nd week is 70. Stock on hand is 65.
The projected requirement for the weeks is given below.
Week 1 2 3 4 5 6 7 8 9 10 11 12
Projected 20 20 25 20 20 25 20 20 30 25 25 25
requirement
Projected 400
requirement
Receipts 800
Stock on hand 100 100 500 500 500 500 500 500
(100) -300
Planned order 800
release