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

question 50

Short Answer

Using the fixed-time-period inventory model, and given an average daily demand of 300 units, 4 days between inventory reviews, 5 days for lead time, 1,200 units of inventory on hand, a z of 1.96, and a standard deviation of demand over the review and lead time of 12 units, what quantity should be ordered? ________________________.

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Definitions:

Attention To Detail

The careful consideration and focus on the small parts or aspects of a task or activity to ensure accuracy and completeness.

Appellate Court

A court that reviews the decisions of lower courts to determine if legal errors were made that could change the outcome of the case.

Remanded

When an appellate court sends a case back to a lower court for further proceedings or a new trial, usually with specific instructions.

Reversed

When a decision or process is turned in the opposite direction or changed to the opposite status.