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Exhibit 12.3 The Following Questions Use the Information Below

question 30

Multiple Choice

Exhibit 12.3
The following questions use the information below.
An auto parts store wants to simulate its inventory system for engine oil. The company has collected data on the shipping time for oil and the daily demand for cases of oil. A case of oil generates a $10 profit. Customers can buy oil at any auto parts store so there are no backorders (the company loses the sale and profit) . The company orders 30 cases whenever the inventory position falls below the reorder point of 15 cases. Orders are placed at the beginning of the day and delivered at the beginning of the day so the oil is available on the arrival day. An average service level of 99% is desired. The following spreadsheets have been developed for this problem. The company has simulated 2 weeks of operation for their inventory system. The current level of on-hand inventory is 25 units and no orders are pending.
-Using the information in Exhibit 12.3, what formula should go in cell J8 to determine the arrival date for an order?

Definitions:

Acquired Company

A company that has been purchased by another entity, often resulting in changes in management, operations, or strategy.

Organizational Culture

The set of shared attitudes, values, goals, and practices that characterizes an institution or organization.

Social Control

Mechanisms, strategies, or structures aimed at regulating individual or group behavior within a society or organization to ensure conformity and compliance to rules or norms.

Weak Cultures

Refers to organizational cultures where there is little agreement on the values, norms, and behaviors expected from employees, leading to inconsistency and varied interpretations.