Compute the Reorder Point When Weekly Demand Is 100 Units,lead

question 37

Multiple Choice

Compute the reorder point when weekly demand is 100 units,lead time is 2 weeks,the desired service level is 98% (which corresponds to 2.06 standard deviations from the mean) and the standard deviation of demand during lead time is 30 units.

• A)125 units
• B)262 units
• C)75 units
• D)187 units

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Definitions:

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, usually a fiscal quarter or year, to calculate net income.

Adjusting Entry

A journal entry made in accounting records at the end of an accounting period to allocate income and expenditure to the correct period.

Net Income

The net earnings of a company, calculated by deducting all operating costs and taxes from the total income.

Adjusting Entries

Entries recorded in the journals at the conclusion of a fiscal period to distribute revenues and costs to the timeframe in which they genuinely took place.