In a Reorder Point Problem Where Both Demand and Lead

question 91

Multiple Choice

In a reorder point problem where both demand and lead time are variable, demand averages 200 units per day with a daily variance of 64, and lead time averages 6 days with a standard deviation of 1 day. What should the reorder point be for a 95% service level?

• A) 330 units
• B) 201 units
• C) 417 units
• D) 1,617 units
• E) 1,531 units

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Definitions:

Market

A venue or mechanism where buyers and sellers interact to trade goods, services, or securities, determining prices through supply and demand.

Unlawful Tying Agreement

An unlawful tying agreement is a form of anti-competitive conduct where a seller requires the buyer to purchase a secondary product as a condition of buying a desired primary product.

Restriction

A limitation or condition placed on an action, activity, or process.