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

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Definitions:

Premarital Sex

Sexual activity between individuals who are not married to each other, a topic of cultural, religious, and moral significance and debate.

Simple Random Sample

A particular type of probability sample in which every member of the population has an equal chance of being selected.

Demographic Variables

Characteristics used to segment populations for study, such as age, gender, income, education, and ethnicity.

Equal Chance

The principle that all individuals should have the same opportunity to access resources, rights, and opportunities without discrimination.