Scenario 9.11 Demand = 50,000 Units/week

question 129

Multiple Choice

Scenario 9.11
Demand = 50,000 units/week
Standard deviation of weekly demand = 15,000 units
Average lead time = 8 weeks
Standard deviation of lead time: 3 weeks
Cycle-service level = 80%
A continuous review system is used to control inventory.
-Use the information in Scenario 9.11. What safety stock should the firm use for this product?

• A) greater than 0 but less than or equal to 50,000 units
• B) greater than 50,000 units but less than or equal to 100,000 units
• C) greater than 100,000 units but less than or equal to 150,000 units
• D) greater than 150,000 units but less than or equal to 200,000 units
• E) greater than 200,000 units

Analyze the impact of consumer behavior on economic outcomes.

Apply the production possibilities curve to analyze choices and trade-offs.

Explain the role of collective decision making in economic systems.

Understand the basics of economic questions (What, How, For Whom) that every economy must answer.

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Definitions:

Staples Thesis

An economic theory suggesting that the development paths of economies are heavily influenced by the export of natural resources or 'staples'.

Innis

Harold Adams Innis, a Canadian professor and the author of seminal works on media, communication theory, and economic history.

World Politics

The study of how global political processes, institutions, and leaders interact in the international arena.

Metaphysical Stage

A phase in Auguste Comte's Law of Three Stages where society searches for the essence of phenomena through abstract speculation and supernatural explanations.