Scenario 9.11 Demand = 50,000 Units/week

question 146

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 reorder point should the firm use for this product?

• A) greater than 0 but less than or equal to 150,000 units
• B) greater than 150,000 units but less than or equal to 300,000 units
• C) greater than 300,000 units but less than or equal to 400,000 units
• D) greater than 400,000 units but less than or equal to 500,000 units
• E) greater than 500,000 units

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Definitions:

Overcurrent

A condition where the current exceeds the rated current of equipment or the capacity of conductors, potentially causing damage or hazard.

Low Intensity

Describes a relatively weak level of power, brightness, or energy output, often used in the context of lights or signals.

Fault Current

The excessive electrical current that flows through a circuit during a fault condition.

Short-Circuits

Electrical connections that unintentionally direct current along an unintended path, often resulting in excessive current flow.