Table 511
the Following Information Has Been Collected on an Independent

question 7

Multiple Choice

Table 5.11
The following information has been collected on an independent demand item:
Demand $= 30$ units per week (assume 52 weeks/ year)
Ordering and setup cost $= \$ 50$ per order
Holding cost $= \$ 8$ per unit per year
Lead time $= 1$ week
Standard deviation in weekly demand $= 8$ units
Cycle-service level $= 90 \%$
You will need to refer to a normal table to answer the question(s) .
-Use the information from Table 5.11.Design a continuous review system (Q system) for this item,making Q equal to the EOQ.Assume that the demand during lead time is normally distributed.What are the desired values for Q and R?

• A) Q is between 138 and 142, and R is between 34 and 38.
• B) Q is between 121 and 125, and R is between 80 and 84.
• C) Q is between 138 and 142, and R is between 39 and 42.
• D) Q is between 121 and 125, and R is between 53 and 57.

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Definitions:

Equilibration

A process described by Piaget in cognitive development where children balance assimilation and accommodation to create stable understanding.

Human Knowledge

The collective information, understanding, and skills acquired by humans through experience, education, and the senses, encompassing both scientific and cultural insights.

Schemes

Plans of action, based on previous experiences, to be used in similar circumstances.

Object Permanence

The realization that objects continue to exist, even when they can no longer be perceived.