Table $5.10$ A Firm Using the Periodic Review System (P System) Reviews

question 80

Multiple Choice

Table $5.10$
A firm using the periodic review system (P system) reviews the status of an item every 4 weeks. The standard deviation in weekly demand is 60 units. The lead time for the item is 3 weeks, whereas demand averages 200 units per week. You will need to refer to a normal table to answer the question(s) .
-Use the information in Table 5.10. Suppose the firm decides on a safety stock (B) of 245 units. It is time to review the item, and the current inventory position is 700 units. How many units should be ordered? (Hint: Before answering this question, you must first compute T, the target inventory level.)

• A) less than or equal to 900 units
• B) greater than 900 but less than or equal to 950 units
• C) greater than 950 but less than or equal to 1000 units
• D) greater than 1000 units

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Definitions:

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a synthetically modified enzyme designed to improve its fidelity, efficiency, or specificity in DNA replication and PCR applications.