Answer: D (790)
Rationale:
Given, on-hand Inventory (OH) = 400 units
Scheduled Receipts (SR) = 15 units
Backorder (BO) = 405 units
Target inventory level = 800 units
Inventory Position = OH + SR - BO
Inventory Position = 400 + 15 - 405
Inventory Position = 10 units
Therefore,
Quantity to be ordered = Target Inventory level - Inventory Position
Quantity to be ordered = 800 - 10
Quantity to be ordered = 790 units
11. (8 points) Consider a periodic review system and suppose that it is time to review...
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