Scenario 9.10 the Dolly Llama Farm Keeps an Average of 50 of 50

question 43

Multiple Choice

Scenario 9.10
The Dolly Llama Farm keeps an average of 50 of those funny creatures on hand and each consumes a pound of grain a day, 365 days per year. Grain costs $12 for a 50 pound bag and it costs the farm $10 to make a run to the feed store to pick up an order, regardless of order size. It takes the feed store four days to acquire, mix, and bag the special blend of grains necessary to make the feed the Dolly Llama Farm prefers. Storage costs for the feed runs 15% of the unit cost as the cost of money, loss due to critters, and spoilage all add up.
-Refer to Scenario 9.10. What should the reorder point be if demand and lead time are invariant and the farm desires a 90% service level?

• A) two bags
• B) four bags
• C) six bags
• D) eight bags

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Definitions:

Reflexes

Involuntary and nearly instantaneous movements in response to stimuli, which are mediated through the nervous system without conscious thought.

Coordination

The ability to use different parts of the body together smoothly and efficiently.

Central Nervous

Often referred to as the central nervous system, it includes the brain and spinal cord, responsible for processing and sending out signals to the rest of the body.

Spinal Cord

The long, thin, tubular structure made up of nervous tissue that extends from the brain, encased within the spine, facilitating communication between the brain and the rest of the body.