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

question 118

Multiple Choice

Table $5.8$
Demand $= 52,000$ units/year
Standard deviation of w eekly 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. What is the EOQ for this item?

• A) greater than 0 but less than or equal to 1500 units
• B) greater than 1500 but less than or equal to 3000 units
• C) greater than 3000 but less than or equal to 4500 units
• D) greater than 4500 units

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Definitions:

Wilcoxon Rank Sum Test

A nonparametric statistical test used to compare two independent samples to assess whether their populations differ significantly.

Significance Level

The probability of rejecting the null hypothesis in a statistical test when it is actually true, often denoted by alpha.

Weekly Salaries

The total amount of money earned by an employee for work done during a standard week.

Employees

Individuals who work for another person or organization in exchange for compensation.