75. Assume that the order point for a product is four units and the maximum stock level is ten units. If there are two units in stock, how many should be ordered?
Answer: D
Eight units should be ordered.
To maintain an optimal inventory level, eight units should be ordered since the maximum stock level is ten units and there are currently two units in stock.
B) 2
Ordering two units would only bring the total stock to four units, which is still below the maximum stock level of ten units. This option does not replenish the stock adequately to meet demand and maintain the set maximum inventory.
C) 4
Ordering four units would increase the stock to six units. Although this is an improvement, it still does not reach the maximum stock level of ten units. Therefore, this option fails to ensure that sufficient inventory is available.
D) 8
Ordering eight units is the correct choice because it would bring the total stock to ten units, which is the maximum stock level. This ensures that there is enough product available to meet potential demand while adhering to inventory management guidelines.
Conclusion
The correct answer is eight units because it fully utilizes the maximum stock level while addressing the current shortfall. Both options B and C do not adequately restock inventory, leaving the business vulnerable to stockouts. Thus, option D is the optimal solution for maintaining effective inventory management.