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

question 38

Multiple Choice

Using the fixed-time-period inventory model, and given an average daily demand of 15 units, 3 days between inventory reviews, 1 day for lead time, 30 units of inventory on hand, a service probability of 98 percent, and a standard deviation of daily demand is 3 units, which of the following is the order quantity?

• A) About 30.4
• B) About 36.3
• C) About 42.3
• D) About 56.8
• E) About 59.8

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Definitions:

Gross Domestic Product

A measure of the economic performance of a country, calculating the total value of all goods and services produced within its borders in a specific time period.

U.S. GDP

The total market value of all final goods and services produced within the United States in a given year, a primary indicator of the country's economic health and performance.

Increased

Describes something that has grown or risen in number, size, value, or extent.

Communism

A political and economic ideology advocating for a classless society and the abolition of private property, where goods and services are shared by the community.