Table $5.9$ Demand $= 140$ Units/week
Standard Deviation in Weekly Demand $= 21$

question 74

Multiple Choice

Table $5.9$
Demand $= 140$ units/week
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 $= 6$ w eeks

You will need to refer to a normal table to answer the question(s) .
-Use the information in Table 5.9. Design a continuous review system making Q equal to EOQ. What will be the economic order quantity (EOQ) ?

• A) less than or equal to 560
• B) greater than or equal to 560 but less than or equal to 575
• C) greater than 575 but less than or equal to 590
• D) more than 590

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Definitions:

Credit

An entry on the right side of an accounting ledger representing an increase in liabilities or income, or a decrease in assets or expenses.

Contra Accounts

Accounts used to offset or reduce the balance of another account, usually appearing on the balance sheet.

Merchandiser

A business or person that purchases goods for resale at a profit.

Debit Balances

Accounts on the left side of the double-entry bookkeeping system that typically include assets and expenses, increased by debits.