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

question 75

Multiple Choice

Using the fixed-time-period inventory model, and given an average daily demand of 75 units, 10 days between inventory reviews, 2 days for lead time, 50 units of inventory on hand, a service probability of 95 percent, and a standard deviation of demand over the review and lead time of 8 units, which of the following is the order quantity?

• A) 863
• B) 948
• C) 1,044
• D) 1,178
• E) 4,510

---

Definitions:

Annual Dividend

The total payment received from a stock or other investment security over the span of a year, often distributed quarterly by the issuing company.

Dividend Increase

An action by a company to raise the amount of dividends paid to its shareholders.

Dividend Growth Rate

The annualized percentage rate of growth that a company's dividend undergoes over a period of time.

Required Rate of Return

The minimum return an investor expects to receive on an investment, considering its risk level.