Scenario 9.8 a Company Operating Under a Continuous Review System Has an Has

question 6

Multiple Choice

Scenario 9.8
A company operating under a continuous review system has an average demand of 50 units per week for the item it produces. The standard deviation in weekly demand is 20 units. The lead-time for the item is six weeks, and it costs the company $30 to process each order. The holding cost for each unit is $10 per year. The company operates 52 weeks per year.
-Use the information in Scenario 9.8. What is the desired safety stock level if the company has a policy of maintaining a 90% cycle-service level?

• A) less than or equal to 50 units
• B) greater than 50 but less than or equal to 100 units
• C) greater than 100 but less than or equal to 150 units
• D) greater than 150 units

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Definitions:

Autonomous Motivation

is a form of motivation driven by personal interest, enjoyment, or inherent satisfaction, rather than external pressures or rewards.

Psychological Needs

Fundamental human motivations that drive behaviors, including the needs for autonomy, competence, and relatedness.

Physiological Needs

Basic physical requirements for human survival, such as food, water, shelter, and rest.

Autonomous Motivation

The drive to perform an activity for its inherent satisfaction rather than for some separable consequence, reflecting a high level of self-determination.