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.

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Definitions:

Hawthorne Studies

A series of experiments conducted in the 1920s and 1930s that concluded that workers were more productive when they believed they were being observed.

Social Needs

Fundamental human requirements for belonging, affection, acceptance, and friendship, often motivating behavior in social and work environments.

Physiological Needs

Basic human requirements for survival, such as food, water, shelter, and sleep, considered the foundation of Maslow's hierarchy of needs.

Self-actualisation Needs

The highest level in Maslow's hierarchy of needs, representing the pursuit of realizing one's full potential and personal growth.