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?

• A) =IF(I8=0,0,A8+I8)
• B) =IF(I8=0,0,A8+1+I8)
• C) =IF(I8=1,0,A8+1+I8)
• D) =IF(I8=0,A8+1+I8,0)

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Definitions:

Newborns

Infants in their first few weeks of life, typically considered to be from birth to one month of age.

Sperm Cells

Male reproductive cells designed to fertilize female eggs, characterized by their motility and role in transferring genetic information to the next generation.

Egg Cells

The female reproductive cells or ova, which when fertilized by sperm, lead to the development of an embryo.

Genes

DNA segments that serve as the key functional units in hereditary transmission, determining aspects of an individual's physical and possibly behavioral traits.