Demand for an Item Is 1000 Units Per Week, with a Standard

question 36

Multiple Choice

Demand for an item is 1000 units per week, with a standard deviation in weekly demand of 60 units. The lead time is 2 weeks. The company wants to maintain an 88 percent cycle- service level. Assume demand during lead time to be normally distributed. For a continuous review system, what should be the reorder point? A normal table is attached at the end of this exam.

• A) less than or equal to 2075
• B) greater than 2075 but less than or equal to 2085
• C) greater than 2085 but less than or equal to 2095
• D) greater than 2095

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Definitions:

CSR Activities

Corporate Social Responsibility activities, which are initiatives taken by companies to assess and take responsibility for the company's effects on environmental and social wellbeing.

Positively Received

Refers to the favorable acceptance or approval of a message, product, or idea by its intended audience.

International PR

The practice of managing communication and relationships between organizations and their publics across different countries and cultures.

Taiwan

An island in East Asia with political status that is subject to international debate, known for its bustling economy, vibrant democracy, and technological innovation.