Vision Toys Uses a Fixed-Quantity System to Manage Its Inventories

question 7

Multiple Choice

Vision Toys uses a fixed-quantity system to manage its inventories. The inventory includes plastic and LED bulbs. It was observed that the company often faces stockout of plastic. The average weekly demand for plastic is 100 pounds, and historical data show that the standard deviation of weekly demand is about 7. The lead time from the plastic supplier is 2 weeks. If the company's acceptable service level is 95 percent and the number of standard deviations necessary to achieve the acceptable service level is 1.645, the reorder point for plastic with safety stock is:

• A) less than or equal to 125 pounds.
• B) more than 125 pounds but less than or equal to 175 pounds.
• C) more than 175 pounds but less than or equal to 225 pounds.
• D) more than 225 pounds.

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Definitions:

Greeting Behaviors

Entail the customary ways individuals acknowledge each other's presence in a social or professional setting.

Cross-cultural Preparation

The training and education provided to individuals to prepare them to effectively interact and work in diverse cultural contexts.

Development Programs

Organized activities designed to enhance the knowledge, skills, and abilities of individuals or teams to improve performance or facilitate personal growth.

Uncertainty Avoidance

A cultural dimension that describes the degree to which people in a society are comfortable with uncertainty and ambiguity, influencing their risk-taking behaviors and decision-making processes.