Question: Each Monday (every 5 working days), one DC performs an inventory review for B and C items and submits an order to central supply. The

Each Monday (every 5 working days), one DC performs an inventory review for B and C items and submits an order to central supply. The lead time is 2 days for this shipment. The average demand for one component, a power cable, is 200 units per week, or 40 units per DC working day. They keep 2 days supply on hand as safety stock. On a given Monday, there are 100 units of this component in stock at the DC. Using the periodic review system, which of the following correctly lists the maximum order quantity and the order quantity for this period?

	a.	Maximum-level inventory is 360 units and order quantity this period is 260 units.
	b.	Maximum-level inventory is 360 units and order quantity this period is 220 units.
	c.	Maximum-level inventory is 320 units and order quantity this period is 220 units.
	d.	Maximum-level inventory is 320 units and order quantity this period is 260 units.

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