Affordable Auto Parts started using a new inventory-tracking software

Question

Data Insights (DI) Butler 2023-24       Click here for Details ]

Affordable Auto Parts started using a new inventory-tracking software package that allows the business to set alarms to alert its purchasing agent when critical items are in short supply. The purchasing agent set alarms to alert her when the number of hoses falls below 10 and when the number of belts falls below 20. When the company began using the software, it had an adequate supply of both items. After a five-day workweek, the software alerted the agent that fewer than 10 hoses remained in stock, and she placed an order for 40 hoses. At the end of the second five-day week, the software alerted her that fewer than 20 belts remained in stock, so she placed an order for 50 belts. At the end of the third five-day week, both alarms signaled a need to order. The rates at which Affordable used belts and hoses during this period were typical of the business. Assuming Affordable works a five-day week, how many belts and how many hoses should the company expect to use per day?

kryinkrumble · Answer

Week 0 : Hoses and belts at adequate amount
Week 1: Hoses < 10 (Ordered 40 hoses), belt at adequate amount
Week 2: Hoses at adequate amount, belts < 20 (Ordered 50 belts)
Week 3: Hoses < 10, belts < 20

With 1 work week having 5 days, 40 hoses take 2 weeks (10 days to be used up) -> 4 hoses used per day. 50 belts take 1 week (5 days to be used up) -> 10 belts used per day.

033 · Answer

please post the official explanation. what about the hoses and belts which are <10 and <20

Sajjad1994 · Answer

Official Explanation

Two weeks after placing an order for 40 hoses, Anderson’s needed to reorder. This suggests that they used about 40 hoses in 10 working days, an average of 4 hoses per day. Their order of 50 belts was depleted in one week, which means they used an average of 10 belts per day.

chetan2u · Answer

It doesn’t matter because alarm will go only after these 40 hoses or 50 belts are sold.

Say, the alarm went meaning 9 hoses were left. Add 40, and alarm will again go when the hose become 9.
So immaterial of whether it is set to go at 9 or 10, the alarm will go again when the number of additional put are sold.

KushagraKirtiman · Answer

Hi Sajjad, 
Should not the usage of hoses be 30 because on the 15th day he ordered new lot. That means on 15 th day they must be have used up 30 hoses and not 40 becuase if the alram goes on 15th day that means the inventory would still have less than 10 parts. I dont understand why we are considering that all the parts were used on the 3 week

Gemmie · Answer

Limit
- Hoses < 10
- Belts < 20

At the end of the 1st week, there were <10 hoses => added 40 hoses
At the end of the 2nd week, there were <20 belts => added 50 belts
At the end of the 3rd week, there were <10 hoses and <20 belts

The company uses about 40 hoses in 10 days (2 5-day workweeks)
=> Avg 4 hoses per day

The company uses about 50 belts in 5 days (1 5-day workweek)
=> Avg 10 belts per day

bumpbot · Answer

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Affordable Auto Parts started using a new inventory-tracking software

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Average number of belts per day	Average number of hoses per day
		2
		4
		5
		10
		20
		50

GMAT Two-part Analysis (TPA) Questions

Affordable Auto Parts started using a new inventory-tracking software

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