Question

If Jackson Collectibles, Inc. has a safety stock of 35 units and the average weekly demand is 14 units, how many days can be covered if the shipment from the supplier is delayed?
A) 2.5 days
B) 17.5 days
C) 21 days
D) 35 days
E) 7.0 days

Answer 1

Answer: B. 17.5 days

Explanation:

The safety stock that Jackson Collectibles has is 35 units.

Their weekly demand however is 14 units.

This means that the number of weeks they can survive on safety stock is:

= Safety stock / demand per week

= 35 / 14

= 2.5 weeks

In days this is:

= 2.5 * 7

= 17.5 days