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.

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Definitions:

Philanthropic Responsibility

The duty of businesses and organizations to contribute to the welfare of society through charitable donations, community service, and ethical practices.

Deontology

Deontology is a branch of ethics that focuses on the morality of actions based on whether they adhere to established rules or duties, rather than on the consequences of the actions.

Virtue Ethics

An approach to ethics that emphasizes an individual's character as the key element of ethical thinking, rather than rules or consequences.

Utilitarianism

A theory in ethics and philosophy that evaluates actions based on their outcomes, aiming for the greatest happiness for the greatest number.