Scenario 12.1 - Charm City

question 84

Multiple Choice

Scenario 12.1 - Charm City
Avon Barksdale's operation uses large quantities of prepaid cell phones,on average 500 per week with a standard deviation of 45.The lead time for their own brand of prepaid cell phones is two weeks and they have a lot size of 125 phones.
-Suppose Mr.Barksdale sets his reorder point at 1100 phones.What is his average cell phone inventory?

• A)87.5 phones
• B)105 phones
• C)162.5 phones
• D)257.5 phones

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Definitions:

Inferior Good

A type of good whose demand decreases as the income of consumers increases, inverse to normal goods.

Consumer Incomes

The total earnings received by consumers, including wages, salaries, benefits, and other income sources, which affect their purchasing power.

Farm Income

The earnings from agricultural operations, including the sale of crops, livestock, and other farm-related sources.

Farm Household

A living arrangement where families live and work primarily on a farm producing agricultural goods.