Table $5.7$ Demand $= 5200$ Units/year
Standard Deviation of Weekly De Mand $= 11$

question 102

Multiple Choice

Table $5.7$
Demand $= 5200$ units/year
Standard deviation of weekly de mand $= 11$ units
Ordering costs $= \$ 45 /$ order
Holding costs $= \$ 2 /$ unit/year
Cycle-service level $= 90 \% ($ z for $90 \% = 1.28 )$
Lead time $= 3$ weeks
Number of weeks per year $= 52$ weeks
-Use the information in Table 5.7. If a firm uses the continuous review system to control the inventory, what would be the reorder point?

• A) 0 units
• B) greater than 0, but less than or equal to 300 units
• C) greater than 300 but less than or equal to 600 units
• D) greater than 600 units

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Definitions:

Professional Advice

Guidance or recommendations given by someone who is well-trained and knowledgeable in a particular field.

Tangentially Related

This term refers to items or topics that are somewhat related to each other but not directly connected or central to the main subject.

Interviewing Strategy

A planned approach to conducting interviews, designed to obtain relevant information effectively and efficiently.

Legal Mandates

Laws or regulations that require individuals or organizations to follow certain procedures or meet specific standards.