Table $5.9$ Demand $= 140$ Units $/$ Wee K
Standard Deviation in Weekly Demand

question 151

Multiple Choice

Table $5.9$
Demand $= 140$ units $/$ wee k
Standard deviation in weekly demand $= 21$ units
Ordering cost $= \$ 20 /$ order
Holding cost $= \$ 1$ per unit per year
Cycle- service level $= 85$ percent
Lead time $= 6$ weeks
You will need to refer to a normal table to answer the question(s) .
-Use the information in Table 5.9. Assume demand during lead time to be normally distributed. For a continuous review system, what should be the reorder point (R) ?

• A) less than or equal to 870
• B) greater than or equal to 870 but less than or equal to 900
• C) greater than 900 but less than or equal to 930
• D) more than 930

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Definitions:

Physician's Office Laboratory

A small lab located within a physician's office where various tests are performed on-site to aid in the quick diagnosis and treatment of patients.

Turnaround Time

The amount of time taken to complete a process, task, or fulfill an order from start to finish.

Technological Resources

Assets in the form of technology, such as software and hardware, that assist in the operations and management of an organization.

Moderate-complexity Tests

Laboratory tests that require a moderate level of expertise, equipment, and interpretative judgment.