A Particular Brand of Soap Has a Lead Time of Three

question 42

Multiple Choice

A particular brand of soap has a lead time of three weeks to reorder,a weekly standard deviation of 10 units,and a weekly average usage of 30 units.The reorder point for this soap,assuming a 95% service level (z = 1.645) ,is

• A) 16.45 units.
• B) 28.50 units.
• C) 106.45 units.
• D) 118.49 units.

---

Definitions:

Budget Constraint

The limit on the consumption bundles that a consumer can afford given their income and the prices of goods and services.

Weekly Income

The total amount of money earned or received by an individual or entity within the span of a week.

Doughnuts

A type of fried dough confectionery or dessert food, typically ring-shaped, sweet, and sometimes filled.

Coffee

A beverage made from roasted and ground seeds of the Coffea plant, consumed worldwide for its stimulating effects.