Problem:
Assuming customers order in relatively predicted cycles, this is the stock necessary to fill orders through the time cycle. The cycle may be determined by a number of factors. Two key factors may include the time necessary to produce the product plus the transit time required to transport the freight to the customer. Suppose it takes 5 days to produce after an order is placed. In addition, it takes 4 days to transport because the carrier utilizes intermodal services to reduce transportation costs. In such a case, the producer would need __ days of inventory to satisfy customer demand from the time the shipment arrives until the next one arrives. a. None of the options b. 8 c. 4 d. 9 e. 5