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

question 75

Multiple Choice

Using the fixed-time-period inventory model, and given an average daily demand of 75 units, 10 days between inventory reviews, 2 days for lead time, 50 units of inventory on hand, a service probability of 95 percent, and a standard deviation of demand over the review and lead time of 8 units, which of the following is the order quantity?

• A) 863
• B) 948
• C) 1,044
• D) 1,178
• E) 4,510

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Definitions:

Offer Terminate

An offer terminate refers to the process of revoking or cancelling a proposal or an offer before it has been accepted.

Bilateral Contract

A contractual agreement involving two parties in which each side agrees to perform an obligation in exchange for a benefit.

Emergency Room

A specialized part of a hospital designed to provide immediate treatment to patients with acute illnesses or injuries.

Auction Without Reserve

An auction in which the item for sale will be sold to the highest bidder without a minimum selling price.