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

question 65

Multiple Choice

Using the fixed-time-period inventory model, and given an average daily demand of 200 units, 4 days between inventory reviews, 5 days for lead time, 120 units of inventory on hand, a z of 1.96, and a standard deviation of demand over the review and lead time of 3 units, which of the following is the order quantity?

• A) About 1,086
• B) About 1,686
• C) About 1,806
• D) About 2,206
• E) About 2,686

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Definitions:

Real Property

Land and anything permanently attached to the land, such as buildings, which can be contrasted with personal property.

Personal Property

Assets or belongings that are not permanently attached to, or part of, real estate.

Testate Succession

The legal process of distributing a deceased person's assets in accordance with their will.

Intestate Succession

The process by which the property of a deceased person is distributed when they die without a valid will, based on laws of the state or country.