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

question 131

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 reorder point if the company finally decides to implement a 95 percent cycle-service level?

• A) less than or equal to 300 units
• B) greater than 300 but less than or equal to 325 units
• C) greater than 325 but less than or equal to 350 units
• D) greater than 350 units

---

Definitions:

Multicultural Competence

The ability of a professional to effectively interact, understand, and respect individuals from diverse cultural backgrounds.

Competent Use of Theory

The proficient application of theoretical concepts and principles in professional practice, ensuring effective outcomes.

Major Mental Health Disciplines

Fields of study and practice that focus on diagnosing, treating, and understanding human mental health and disorders.

Competencies

The skills, knowledge, and abilities that enable a person to perform tasks successfully.