The Franklin County Hospital Is Currently Using a Continuous Review

question 157

Multiple Choice

The Franklin County Hospital is currently using a continuous review system to control its inventory. One of the items in inventory is an elastic band. The average demand for this item is 200 boxes per week, and the standard deviation in weekly demand is 50 boxes. If the lead time is 3 weeks and the hospital wants a 99 percent cycle- service level, what is the reorder point for this item? A normal table is appended to this exam.

• A) less than or equal to 650 boxes
• B) greater than 650 boxes but less than or equal to 750 boxes
• C) greater than 750 boxes but less than or equal to 850 boxes
• D) greater than 850 boxes

Describe the components and purpose of a Cost-Volume-Profit (CVP) chart.

Define the break-even point and its importance in business decision-making.

Conduct a cost-volume-profit analysis for multi-product companies with known sales mixes.

Calculate the margin of safety and its implications for business stability.

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Definitions:

Promulgate Regulations

The act of formally declaring or announcing new rules or laws, often by a government or authoritative body, to enforce compliance.

Judicial Branch

The branch of government responsible for interpreting the law, composed of courts and judges, and has the power to decide legal disputes and ensure justice.

Special Interest Groups

Organizations or groups formed to advocate for specific causes, policies, or interests, often seeking to influence public policy or legislation.

Public Policy

A course of action or regulations adopted by government to address societal issues, guide decisions, and achieve rational outcomes.