Your Firm Uses a Continuous Review System (Q System),where the Inventory

question 176

Multiple Choice

Your firm uses a continuous review system (Q system) ,where the inventory position is updated after every transaction.The firm operates 52 weeks per year.One of the items has the following characteristics:
Demand = 14,560 units per year
Ordering cost = $40 per order
Holding cost = $6 per unit per year
Lead time = 2 weeks
Standard deviation in weekly demand = 100 units
Cycle-service level = 80 percent
If Q is made equal to the EOQ,what are the desired values for Q and R?

• A) Q is between 65 and 69, and R is between 398 and 402.
• B) Q is between 65 and 69, and R is between 362 and 366.
• C) Q is between 439 and 443, and R is between 678 and 682.
• D) Q is between 439 and 443, and R is between 559 and 563.

---

Definitions:

Occupational Structure

A framework detailing the various job roles, functions, and hierarchies within an organization or economy.

Segmented Labour Market

A labor market split into separate segments or sectors, each with its own characteristics and rules, often leading to inequality.

Cree First Nation

The Cree First Nation is one of the largest groups of First Nations in North America, located in regions of Canada spanning from Ontario to the Rocky Mountains.

Unionized Factory

A manufacturing facility where the workforce is organized into a union, which negotiates collectively for wages, hours, and working conditions.