Table $5.4$ A Company Operating Under a Continuous Review System Has an Has

question 113

Multiple Choice

Table $5.4$
A company operating under a continuous review system has an average demand of 50 units per week for the item it produces. The standard deviation in weekly demand is 20 units. The lead time for the item is 6 weeks, and it costs the company $\$ 30$ to process each order. The holding cost for each unit is $\$ 10$ per year. The company operates 52 weeks per year. You will need to refer to a normal table to answer the question(s) .
-Use the information in Table 5.4. What is the reorder point if the company finally decides to have a 95 percent cycle- service level?

• A) less than or equal to 300 units
• B) greater than 300 but less than or equal to 325 units
• C) greater than 325 but less than or equal to 350 units
• D) greater than 350 units

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Definitions:

Socialized Power

Power used for the benefit of others or the organization, emphasizing collective goals over personal interests.

Socialized Power Orientation

A leadership approach focused on utilizing power for the benefit of others, rather than for personal gain.

Esteem and Status

Pertains to the perception of an individual's or group's value and position within a social hierarchy.

Referent Power

A form of influence based on the charismatic appeal or personal attraction one has over others.