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

question 38

Multiple Choice

Using the fixed-time-period inventory model, and given an average daily demand of 15 units, 3 days between inventory reviews, 1 day for lead time, 30 units of inventory on hand, a service probability of 98 percent, and a standard deviation of daily demand is 3 units, which of the following is the order quantity?

• A) About 30.4
• B) About 36.3
• C) About 42.3
• D) About 56.8
• E) About 59.8

---

Definitions:

Price

The amount of money expected, required, or given in payment for something.

Terms of Agreement

The specific conditions or clauses that are agreed upon by parties in a contract or agreement.

Satisfaction

The feeling of pleasure or contentment arising from the fulfillment of one's needs or desires.

Concessions

Compromises made by negotiating parties where one or more participants agree to make a change in their position to reach an agreement.