Demand for Dishwasher Water Pumps Is 8 Per Day

question 99

Multiple Choice

Demand for dishwasher water pumps is 8 per day. The standard deviation of demand is 3 per day, and the order lead time is four days. The service level is 95%. What should the reorder point be?

• A) about 18
• B) about 24
• C) about 32
• D) about 38
• E) more than 40

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Definitions:

Upstream Cost

Expenses related to the exploration, development, and production phases in industries such as oil and gas.

Marketing

The process of promoting, selling, and distributing a product or service, including market research and advertising.

Researching Grapes

A focused study or examination related to grape varieties, cultivation techniques, or the impact of environmental factors on grape production, often for winemaking purposes.

Wine Barrel

A cylindrical container typically made of oak wood used for the aging, fermentation, or storage of wine, imparting flavors and aiding in the wine's development.