Using the Fixed-Time-Period Inventory Model, and Given an Average Daily

question 65

Multiple Choice

Using the fixed-time-period inventory model, and given an average daily demand of 200 units, 4 days between inventory reviews, 5 days for lead time, 120 units of inventory on hand, a z of 1.96, and a standard deviation of demand over the review and lead time of 3 units, which of the following is the order quantity?

• A) About 1,086
• B) About 1,686
• C) About 1,806
• D) About 2,206
• E) About 2,686

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Definitions:

River

A natural flowing watercourse, usually freshwater, flowing towards an ocean, sea, lake, or another river.

Freshwater Wetlands

Areas of land covered by fresh water for part of or all of the year, characterized by distinct plant and animal communities.

Marshes

Wetland areas often inundated with water, characterized by soft, waterlogged soil and aquatic plants.

Swamps

Wetland ecosystems characterized by the dominance of trees, stagnant water, and rich organic material.