A Company Has Recorded the Last Six Days of Daily

question 42

Multiple Choice

A company has recorded the last six days of daily demand on a single product it sells. Those values are 37, 115, 93, 112, 73, and 110. The time from when an order is placed to when it arrives at the company from its vendor is 3 days. Assuming the basic fixed-order-quantity inventory model fits this situation and no safety stock is needed, which of the following is the reorder point (R) ?

• A) 540
• B) 270
• C) 115
• D) 90
• E) 60

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Definitions:

Mnemonic

A technique used to improve memory, often by making information easier to remember through the use of a pattern, phrase, or association.

Incidental Learning

The process of acquiring knowledge unintentionally or without conscious effort during an activity not specifically designed for learning.

Latent Learning

Learning that occurs without apparent reinforcement but is not demonstrated until an incentive is provided.

Traumatic Amnesia

Memory loss following a traumatic event, where the individual may be unable to recall important personal information or details of the trauma.