Table $5.8$ Demand $= 52,000$ Units/year
Standard Deviation of Weekly Demand $= 110$

question 44

Multiple Choice

Table $5.8$
Demand $= 52,000$ units/year
Standard deviation of weekly demand $= 110$ units
Ordering costs $= \$ 45$ /order
Holding costs $= \$ 0.50 /$ unit/year
Cycle-service level $= 90 \%$
Lead time $= 2$ weeks
Number of weeks per year $= 52$ weeks
You will need to refer to a normal table to answer the question(s) .
-Use the information in Table 5.8. If the firm changed to a continuous review system, what would be the reorder point?

• A) 0 units
• B) greater than 0 but less than or equal to 1000 units
• C) greater than 1000 but less than or equal to 2000 units
• D) greater than 2000 units