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

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Definitions:

Legally Not Enforceable

Describes agreements or contracts that cannot be upheld or mandated by law.

Verbal And Written

Pertains to the forms of communication: verbal being spoken language, and written being text-based communication.

Customer Satisfaction

A measure of how products or services supplied by a company meet or exceed the expectations of its customers.

Team Member Satisfaction

This refers to the level of contentment and positivity felt by individuals within a team, impacting morale and work effectiveness.