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An Office Manager uses a Periodic Review Inventory System: they check the inventory in their Office Supply Closet once every 10 days, placing an order with their supplier depending on the inventory level in the Supply Closet. The operator has set a restocking level of 400 boxes of paper clips for their Supply Closet. This week, the manager has counted 160 boxes of paper clips in the closet. How many boxes of paper clips will the manager order from their supplier

Answer :

Parraingo

Based on the restocking level and the amount of paper clips in the closet, the manager will order 240 boxes of paper clips.

This question deals with the Order Quantity which is calculated as:

= Restocking order level - Current Inventory level

Restocking order level = 400 boxes of paper clips

Current inventory level = 160 boxes of paper clips

Order quantity:

= 400 - 160

= 240 boxes of paper clips

In conclusion, the manager will order 240 boxes.

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