Using the Fixed-Time-Period Inventory Model, and Given an Average Daily

question 65

Multiple Choice

Using the fixed-time-period inventory model, and given an average daily demand of 200 units, 4 days between inventory reviews, 5 days for lead time, 120 units of inventory on hand, a z of 1.96, and a standard deviation of demand over the review and lead time of 3 units, which of the following is the order quantity?

• A) About 1,086
• B) About 1,686
• C) About 1,806
• D) About 2,206
• E) About 2,686

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Definitions:

Marketing Efforts

Activities and campaigns undertaken by a company to promote its products or services and increase its market presence.

Generating Revenue

The process of making money through various activities like sales, services, and other commercial ventures.

Tony the Tiger

The advertising cartoon mascot for Kellogg’s Frosted Flakes cereal, known for his catchphrase, "They’re Gr-r-reat!"

Brand

A distinguishing symbol, mark, logo, name, word, sentence, or a combination of these, used by companies to distinguish their product or service from others.