Scenario 9.12 Demand = 100,000 Units/year

question 103

Multiple Choice

Scenario 9.12
Demand = 100,000 units/year
Number of days per year = 250 weeks
Standard deviation of weekly demand = 50 units
Average lead time = 5 days
Standard deviation of lead time: 2 days
Cycle-service level = 99%
A continuous review system is used to control inventory.
-Use the information in Scenario 9.12. What safety stock should the firm use for this product?

• A) greater than 0 but less than or equal to 500 units
• B) greater than 500 units but less than or equal to 1,500 units
• C) greater than 1,500 units but less than or equal to 2,500 units
• D) greater than 2,500 units

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Definitions:

Ethical Issues

Moral conflicts involving a dilemma between choosing right and wrong, often arising in a professional, social, or scientific context.

Role Conflict

The frustrations and uncertainties a person experiences when the expectations of two or more roles are incompatible.

Role Expectations

The anticipated behaviors and responsibilities associated with a particular social position or status.

Role Incompatibility

A situation where an individual faces conflicting demands from different roles they occupy, leading to stress and difficulty in fulfilling role expectations.