Using the Data Regarding the Inventory Management of a Stock-Keeping

question 14

Multiple Choice

Using the data regarding the inventory management of a stock-keeping unit shown in the following table, it can be concluded that the optimal replenishment level with safety stock for a fixed-period system (FPS) under the model assumptions is:
$\begin{array} { | l | l | } \hline \text { Demand } & 140 \text { units per week } \\\hline \text { Order Cost } & \$ 30 \text { per order } \\\hline \text { Inventory-Holding Cost } & \$ 0.4 \text { per unit per year } \\\hline \text { Lead Time } & 3 \text { weeks } \\\hline \text { Economic Time Interval } & 7 \text { weeks } \\\hline \text { Standard Deviation in Weekly Demand } & 8 \\\hline \text { Acceptable Service Level } & 95 \text { percent } \\\hline \text { Standard Deviations to Achieve the Acceptable Service Level } & 1.645 \\\hline\end{array}$

• A) more than 1,350 but less than 1,550 units.
• B) more than 1,550 but less than 1,650 units.
• C) more than 1,650 but less than 1,750 units.
• D) more than 1,750 but less than 1,850 units.

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Definitions:

DSM

Diagnostic and Statistical Manual of Mental Disorders, a publication by the American Psychiatric Association outlining mental health disorders.

Homosexuality

The romantic or sexual attraction or orientation toward members of the same sex.

Voyeuristic Disorder

Disorder characterized by obtainment of sexual arousal by compulsively and secretly watching another person undressing, bathing, engaging in sex, or being naked.

Exhibitionistic Disorder

A mental condition marked by a compulsion to expose one’s genitals to an unsuspecting person for sexual gratification.