Table $5.7$ Demand $= 5200$ Units/year
Standard Deviation of Weekly Demand $= 11$

question 11

Multiple Choice

Table $5.7$
Demand $= 5200$ units/year
Standard deviation of weekly demand $= 11$ units
Ordering costs $= \$ 45 /$ order
Holding costs $= \$ 2 /$ unit/year
Cycle-service level $= 90 \% ($ z for $90 \% = 1.28 )$
Lead time $= 3$ weeks
Number of weeks per year $= 52$ weeks
-Use the information in Table 5.7. The firm decided to change to the periodic review system to control the item's inventory. For the most recent review, an inventory clerk checked the inventory of this item and found 500 units. There were no scheduled receipts at the time. How many units should be ordered? (HINT: Use the EOQ model to derive P, the time between reviews.)

• A) 0 units
• B) greater than 0 but less than or equal to 300 units
• C) greater than 300 but less than or equal to 600 units
• D) above 600 units

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Definitions:

Interstate Highway

A network of controlled-access highways that forms part of the National Highway System in the United States, designed for high-speed vehicular traffic.

Farm-To-Market Road

A state or county road that connects rural or agricultural areas to market towns or cities.

Public Road

A path or a roadway that is available for use by the general public and maintained by a public authority.