ITPEC IP October 2023 Question 71
ITPEC IP October 2023 — Question 71 of 100
The minimum May order is 6,000 units because it arrives at the end of May for June production. Start with 6,000 units at the end of March. April production consumes 5,000, leaving 1,000; the 6,000-unit April order then arrives, giving 7,000 for May. May production consumes 6,000, leaving 1,000. June needs 7,000, so the May order must supply 7,000 − 1,000 = 6,000.
Answer (b)
Why not others:
- 5,000 leaves only 6,000 available for June
- 7,000 and 8,000 exceed the minimum because 1,000 remains after May production
Key rule: Respect the one-month procurement lead time and carry ending inventory forward before calculating the next net requirement.
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