Scenario 9.7 You Are the Operations Manager of a Firm That Uses

question 101

Multiple Choice

Scenario 9.7
You are the operations manager of a firm that uses the continuous-review inventory control system.Suppose the firm operates 52 weeks a year,365 days,and has the following characteristics for its primary item:
Demand = 25,000 units/year
Ordering cost = $30/order
Holding cost = $8/unit/year
Lead time = 2 weeks
Standard deviation in weekly demand = 100 units
A normal distribution table is appended to this exam.
-Use the information in Scenario 9.7.What is the length of their order cycle if they order the economic order quantity each time?

• A)less than or equal to 4 days
• B)greater than 4 days but less than or equal to 5 days
• C)greater than 5 days but less than or equal to 6 days
• D)greater than 6 days

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Definitions:

Theta Waves

Brain wave patterns associated with deep relaxation and the early stages of sleep.

Alpha Waves

Brain waves detected by electroencephalography (EEG), representing a state of wakeful relaxation, typically associated with calm, awake but relaxed states of mind.

Electroencephalograph (EEG)

A device used to record the electrical activity of the brain, often used in sleep and brain function research.

REM Sleep

A stage of sleep characterized by rapid eye movement, increased brain activity, and vivid dreams, playing a role in memory consolidation and emotional processing.