Jan Tuttle Is the Inventory Manager of an Art Supply

question 70

Multiple Choice

Jan Tuttle is the inventory manager of an art supply store. She uses a periodic review system for all oil paints. The number of periods between orders (P) for red #69 is 15 workdays. (The store operates 50 weeks/year, 5 workdays/week.) Additional information concerning red #69 follows. Demand = 30 units/workday
Standard deviation of daily demand = 4 units/workday Lead time = 7 workdays
Desired cycle- service level = 85%
A normal table is appended to this exam. What is the target inventory level T for red #69?

• A) less than or equal to 550
• B) greater than 550 but less than or equal to 600
• C) greater than 600 but less than or equal to 650
• D) greater than 650

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Definitions:

Lumber Prices

The cost of lumber, varying based on supply and demand dynamics, quality, and the geopolitical environment.

Home Construction

The process of building residential structures, encompassing activities from site preparation through to completion.

Supply Increase

A situation where the quantity of a good or service that producers are willing to offer for sale rises.

Flour Price

The market cost of flour, determined by factors like supply, demand, and production costs.