Jan Tuttle Is the Inventory Manager of an Art Supply

question 70

Multiple Choice

Jan Tuttle is the inventory manager of an art supply store. She uses a periodic review system for all oil paints. The number of periods between orders (P) for red #69 is 15 workdays. (The store operates 50 weeks/year, 5 workdays/week.) Additional information concerning red #69 follows. Demand = 30 units/workday
Standard deviation of daily demand = 4 units/workday Lead time = 7 workdays
Desired cycle- service level = 85%
A normal table is appended to this exam. What is the target inventory level T for red #69?

• A) less than or equal to 550
• B) greater than 550 but less than or equal to 600
• C) greater than 600 but less than or equal to 650
• D) greater than 650

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Definitions:

ICON

A graphical symbol representing a program, function, data, or file on a computer interface.

Function Blocks

In industrial automation, function blocks are pre-defined program instructions used to perform specific logical, arithmetic, or control functions in programmable controllers.

Non-executable Code

Parts of software that do not contain instructions executable by the CPU but may include data, resources, or scripts.