The Following Information Has Been Collected on an Independent Demand $= 30$

question 73

Multiple Choice

The following information has been collected on an independent demand item:
Demand $= 30$ units per week (assume 52 weeks/ year)
Ordering and setup cost $= \$ 50$ per order
Holding cost $= \$ 8$ per unit per year
Lead time $= 1$ week
Standard deviation in weekly demand $= 8$ units Cycle- service level $= 90 \%$
You will need to refer to a normal table to answer the question(s) .
-Use the information from Table 5.11. Design a continuous review system (Q system) for this item, making Q equal to the EOQ. Assume that the demand during lead time is normally distributed. What are the desired values for Q and R?

• A) Q is between 121 and 125, and R is between 80 and 84.
• B) Q is between 138 and 142, and R is between 39 and 42.
• C) Q is between 121 and 125, and R is between 53 and 57.
• D) Q is between 138 and 142, and R is between 34 and 38.

---

Definitions:

Egocentrism

The inability to differentiate between self and others, leading to viewing everything solely from one's own perspective.

Preconventional Morality

The first level of Kohlberg's theory of moral development, where moral understanding is based on rewards, punishment, and personal self-interest.

Babinski Reflex

A reflex action in which the big toe remains extended or extends itself when the sole of the foot is stimulated, indicative of abnormalities in the central nervous system.

Moro Reflex

An infantile reflex triggered by a sudden loss of support, where the infant feels as if it is falling, manifesting in spreading arms, pulling arms in, and crying.