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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