A Company Wants to Determine Its Reorder Point (R)

question 28

Multiple Choice

A company wants to determine its reorder point (R) . Demand is variable and the company wants to build a safety stock into R. If the average daily demand is 12, the lead time is 5 days, the desired z value is 1.96, and the standard deviation of usage during lead time is 3, which of the following is the desired value of R?

• A) About 6
• B) About 16
• C) About 61
• D) About 66
• E) About 79

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Definitions:

Inorganic Carbons

Carbon compounds that do not contain carbon-hydrogen bonds, typically excluding those found in living organisms or their remains.

Nitrogen-Fixing Bacteria

Bacteria capable of converting atmospheric nitrogen into ammonia, making nitrogen available to plants for growth.

T. Aquaticus

A species of bacterium that thrives in hot environments and is a source of Taq polymerase, a key enzyme in PCR (polymerase chain reaction) technology.

Agrobacterium

A genus of bacteria known for its ability to transfer DNA to plant cells, widely used in genetic engineering to introduce new genes into plant genomes.