Scenario 12.2 - Hamsterdam

question 20

Multiple Choice

Scenario 12.2 - Hamsterdam
Marlo Stanfield's operation also uses large quantities of prepaid cell phones,on average 1500 per week with a standard deviation of 145.The lead time for their own brand of prepaid cell phones is three weeks and they have a lot size of 350 phones.To ensure they never run out,they keep a safety stock of 500 phones with Proposition Joe.
-What is the fill rate under this policy?

• A)0.9398
• B)0.9833
• C)0.9921
• D)0.9938

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Definitions:

Price of Labor

The wages or salary paid to workers for their services, often determined by supply and demand in the labor market.

Least-Cost Rule

A principle suggesting that the most efficient way to achieve a desired level of output is by minimizing the cost of input resources.

Unit Cost

The calculated cost to produce one unit of a product, taking into account all relevant production expenses.

Technological Advance

The progress in technological development that leads to more efficient processes, products, or services.