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

question 75

Multiple Choice

Using the fixed-time-period inventory model, and given an average daily demand of 75 units, 10 days between inventory reviews, 2 days for lead time, 50 units of inventory on hand, a service probability of 95 percent, and a standard deviation of demand over the review and lead time of 8 units, which of the following is the order quantity?

• A) 863
• B) 948
• C) 1,044
• D) 1,178
• E) 4,510

---

Definitions:

Altruism

The selfless concern for the well-being of others without any expectation of reward or recognition.

9/11 Terrorist Attack

A series of coordinated terrorist attacks by the Islamic terrorist group al-Qaeda against the United States on September 11, 2001.

Social Exchange

The theory that human relationships and social behavior are shaped by an exchange process aimed at maximizing benefits and minimizing costs.

Self-Disclosure

The act of revealing personal information to others, which can enhance intimacy or social bonding.