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How many cases of canned peaches should be ordered if the maximum quantity is 6 cases, the minimum is 4 cases, the lead time is 3 days, the usage is one case per day, and there are 5 cases on hand?

  1. 1 case

  2. 2 cases

  3. 3 cases

  4. 4 cases

The correct answer is: 2 cases

If we order only one case, it would not be enough to cover our daily usage for the three days of lead time, and we would run out before the next order arrives. If we order three cases, we would have two extra cases left after the lead time, which would exceed our maximum quantity limit. Ordering four cases would meet our minimum requirement, but it would leave us with only one case in stock after the lead time, which might not be enough to meet the daily usage. Therefore, ordering two cases would cover our daily usage for three days and stay within the maximum quantity limit. Additionally, it would leave us with three cases in stock, which is within our limits.