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Solution Library
Order Quantity in Operations Management
Question
In the beer game, suppose you manage the retail store and decide to keep track of the inventory position. After some discussions with your teammates, you set the target inventory position for the retail store at 280. Suppose at the beginning of a period, your on-hand inventory is 60 and your total outstanding orders, i.e., orders you have placed but not yet received, is 190. How much should you order?
a) 220
b) 90
c) 30
d) 0
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