Reorder Quantity Calculation
Question
Reorder quantities for an item subinventory are calculated using Fixed Lot Multiple and Round Order Quantity.
Assume that the reorder quantity is 24 and you specify 10 for the fixed lot multiple and enable rounding the reorder quantity.
What will be the reorder quantity?
Answers
Explanations
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A. B. C. D.A.
In the given scenario, we are calculating the reorder quantity for an item subinventory using Fixed Lot Multiple and Round Order Quantity.
Fixed Lot Multiple is a feature in inventory management systems that allows the user to specify a fixed quantity that is used as a multiple for the reorder quantity. In other words, the reorder quantity will be a multiple of the fixed lot quantity. For example, if the fixed lot quantity is 10 and the reorder quantity is 24, then the reorder quantity will be rounded up to the next multiple of 10, which is 30.
Round Order Quantity is another feature in inventory management systems that allows the user to specify whether the reorder quantity should be rounded up or down to the nearest multiple of the fixed lot quantity. In the given scenario, rounding is enabled, which means that the reorder quantity will be rounded to the nearest multiple of the fixed lot quantity.
Therefore, to calculate the reorder quantity, we first need to determine the nearest multiple of the fixed lot quantity (10) to the original reorder quantity (24). The nearest multiple of 10 to 24 is 20. Then, we need to determine whether to round up or down to the nearest multiple of 10. Since rounding is enabled, we need to round up to the nearest multiple of 10, which is 30.
So, the answer is A. 30.
