Question: The Management will be making decisions on the Lot-size (weeks) for each of the components used in the production of The Fresh Connection's products. The
The Management will be making decisions on the Lot-size (weeks) for each of the components used in the production of The Fresh Connection's products. The Lot-size (weeks) indicates that each time an order is needed, the system will determine how many units are needed to get through until the next order. Each week is 5 days. Therefore, a Lot size (weeks) of 2.4 would mean that you are getting enough for 12 days (2 full weeks plus 40% of another 5 days).
Your Vice President of Purchasing has determined that Orange should be delivered in an IBC. A tank in The Fresh Connection has a capacity of 30,000 liters or 30 IBCs. That is, each IBC can hold 1,000 liters.
Your VP has decided on a Lot size (weeks) for Orange of 4.9 weeks. If your demand for Orange is 67,819 liters per week, on average, how many IBCs would you need for each order? They will not ship a partial IBC so round your final answer up to the next full IBC.
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