Table 56
Peterson Enterprises Uses a Continuous Review Inventory Control System

question 95

Multiple Choice

Table 5.6
Peterson Enterprises uses a continuous review inventory control system. The firm operates 50 weeks per year and has the following characteristics for an item:


Standard deviation in weekly demand $= 125$ units
You will need to refer to a normal table to answer the question(s) .
-Use the information in Table 5.6. What is the EOQ for this item?

• A) less than or equal to 1100 units
• B) greater than 1100 but less than or equal to 1200 units
• C) greater than 1200 but less than or equal to 1300 units
• D) more than 1300 units

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Definitions:

Employee's Decision

The choices made by an employee regarding their job and career path, including job acceptance, resignation, or retirement.

Retire

To leave one's job or profession after reaching a certain age, often resulting in receiving pensions or other retirement benefits.

Producer Surplus

The distance between the expected financial return by producers on a good or service and the actual financial return.

Total Producer Surplus

The sum of the individual producer surpluses of all the sellers of a good in a market.