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

---

Definitions:

Slaves Doing Fieldwork

The forced labor of enslaved African and African-American people, primarily in agricultural settings such as plantation fields.

Baltimore Sanitary Fair

An event held in 1864 to raise funds for Union soldiers’ medical care during the American Civil War, showcasing public support and patriotism.

Civil Liberties

Fundamental rights and freedoms protected by law from government intrusion or abuse.

Abraham Lincoln

The 16th President of the United States, serving from 1861 until his assassination in 1865, known for leading the country during the Civil War and abolishing slavery.