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

---

Definitions:

Positional Bargaining

A negotiation strategy where parties hold onto fixed ideas or positions rather than seeking mutual benefits or compromises.

Trust

Trust is the reliance on the integrity, strength, ability, or character of a person or entity, crucial for cooperation and functioning in social and professional contexts.

Collaboration

Working together with one or more people to achieve a common goal, often involving shared decision-making and efforts.

Brainstorming

A group creativity technique designed to generate a large number of ideas for the solution of a problem.