Table $5.7$ Demand $= 5200$ Units/year
Standard Deviation of Weekly De Mand $= 11$

question 102

Multiple Choice

Table $5.7$
Demand $= 5200$ units/year
Standard deviation of weekly de mand $= 11$ units
Ordering costs $= \$ 45 /$ order
Holding costs $= \$ 2 /$ unit/year
Cycle-service level $= 90 \% ($ z for $90 \% = 1.28 )$
Lead time $= 3$ weeks
Number of weeks per year $= 52$ weeks
-Use the information in Table 5.7. If a firm uses the continuous review system to control the inventory, what would be the reorder point?

• A) 0 units
• B) greater than 0, but less than or equal to 300 units
• C) greater than 300 but less than or equal to 600 units
• D) greater than 600 units