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A Company Has Recorded the Last Five Days of Daily

question 45

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A company has recorded the last five days of daily demand on its only product. Those values are 120, 125, 124, 128, and 133. The time from when an order is placed to when it arrives at the company from its vendor is 5 days. Assuming the basic fixed-order-quantity inventory model fits this situation and no safety stock is needed, which of the following is the reorder point (R) ?


Definitions:

Piaget

A Swiss psychologist named Jean Piaget who is best known for his influential theory of cognitive development in children.

Sensorimotor Substage

The initial phase in Piaget's theory of cognitive development, from birth to approximately age 2, where infants learn about the world through basic actions such as sucking, grasping, looking, and listening.

Telegraphic Speech

A form of communication often used by young children, consisting of short and simple phrases that leave out unnecessary words.

Universal

A term that refers to something that is applicable or common to all purposes, conditions, or situations.

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