Table $5.8$ Demand $= 52,000$ Units/year
Standard Deviation of Weekly Demand $= 110$

question 44

Multiple Choice

Table $5.8$
Demand $= 52,000$ units/year
Standard deviation of weekly demand $= 110$ units
Ordering costs $= \$ 45$ /order
Holding costs $= \$ 0.50 /$ unit/year
Cycle-service level $= 90 \%$
Lead time $= 2$ weeks
Number of weeks per year $= 52$ weeks
You will need to refer to a normal table to answer the question(s) .
-Use the information in Table 5.8. If the firm changed to a continuous review system, what would be the reorder point?

• A) 0 units
• B) greater than 0 but less than or equal to 1000 units
• C) greater than 1000 but less than or equal to 2000 units
• D) greater than 2000 units

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Definitions:

Components

The individual parts or elements that make up a larger system or product.

Market Penetration Strategy

A growth strategy where a business focuses on selling existing products within existing markets to gain a higher market share.

Joint Venture

A business arrangement where two or more parties agree to pool their resources for the purpose of accomplishing a specific task.

Market-Entry Strategy

The planned method of delivering goods or services to a new target market and establishing a presence there.