Weekly Demand for a Particular Item Averages 30 Units, with a Standard

question 108

Multiple Choice

Weekly demand for a particular item averages 30 units, with a standard deviation of 4. This item is managed with a fixed-order-interval model. The order interval is three weeks, and this item has a certain lead time of one week. The desired service level is 97.5 percent. Assume that it is now time to place another order, and there are 43 units on hand. How many units should be ordered?

• A)120
• B)93
• C)136
• D)46
• E)84

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Definitions:

CRM Process

Customer Relationship Management process, involving strategies and technologies used by companies to manage and analyze customer interactions and data throughout the customer lifecycle.

Customer Relationships

The ongoing interactions and engagements a business has with its customers, aiming to foster loyalty and satisfaction.

OTC Cycle Variability

The fluctuations in the duration and efficiency of Over-The-Counter (OTC) drug marketing and sales processes.