Table $5.10$ A Firm Using the Periodic Review System (P System) Reviews

question 163

Multiple Choice

Table $5.10$
A firm using the periodic review system (P system) reviews the status of an item every 4 weeks. The standard deviation in weekly demand is 60 units. The lead time for the item is 3 weeks, whereas demand averages 200 units per week. You will need to refer to a normal table to answer the question(s) .
-Use the information in Table 5.10. How much safety stock should be held to achieve a 95 percent cycle service level?

• A) less than or equal to 270 units
• B) greater than 270 but less than or equal to 285 units
• C) greater than 285 but less than or equal to 300 units
• D) greater than 300 units

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Definitions:

Principle of Justice

A fundamental moral guideline for ensuring fairness and equitable treatment of individuals within society.

Sales Pressure

The stress or tension that arises from attempting to persuade customers to purchase a product or service within certain time limits or under challenging conditions.

Employee Rights

Rights desired by employees regarding their job security and the treatment administered by their employers while on the job, irrespective of whether those rights are currently protected by law or collective bargaining agreements of labor unions.

House Account

A term used in sales and customer service referring to accounts that are directly managed by the company, often requiring special attention or services.