Question

Let's say that your company has created an independent requirement of 100,000 boxes of Blueberry Muesli as part of its replenishment strategy. Currently, your company has 30,000 boxes of Blueberry Muesli in stock. When you run MRP, planned orders will be created to cover how many boxes?

Answer 1

Answer:

Planned orders for 70,000 boxes of Blueberry Muesli.

Explanation:

When a company implements planned replenishment of a particular inventory, once the inventory depleted to a particular level, the company will request for more supply of the inventory.

This strategy helps the company not to run out of inventory required to run their business. For example a business can decide that when stocks reduce to 20% they will replenish back to 100%.

In this case the replenishment should bring stock back to 100,000, and stock is at 30,000.

So the required stock to return it to 100,000 is 100,000- 30,000= 70,000 units.