Table 1
Jackson Enterprises Uses a Fixed Order Quantity Inventory $=20,000$

question 56

Multiple Choice

Table 1
Jackson Enterprises uses a fixed order quantity inventory control system. The firm operates 50 weeks per year and has the following characteristics for an item:
Demand $=20,000$ units/year
Ordering cost $=\$ 45 /$ order
Inventory-carrying cost as a percent of item value $=25 \%$
Item (Unit) value $=\$ 20$
Lead time $=5$ weeks
Standard deviation in weekly demand $=125$ units
-Using the information in Table 1, if the service level is 96 percent, what is the reorder point?

• A) Less than or equal to 2,800 units
• B) Greater than 2,800 but less than or equal to 3,200 units
• C) Greater than 3,200 but less than or equal to 3,600 units
• D) Greater than 3,600 units

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Definitions:

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Direct, patient-centered medical services ranging from preventive care to treatment and management of diseases and conditions by health professionals.

Health Administration

The practice of overseeing and managing healthcare systems, including hospitals, clinics, and other health services, focusing on efficiency, policy, and patient care.

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A business, especially in healthcare or law, owned and operated by an individual practitioner or a group of professionals.

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The process of identifying and giving attention to a specific area or subject for detailed consideration.