Your Firm Uses a Continuous Review System (Q System),in Which

question 200

Multiple Choice

Your firm uses a continuous review system (Q system) ,in which the inventory position is updated after every transaction.The firm operates 52 weeks per year.One of the items has the following characteristics: Demand = 14,560 units per year
Ordering cost = $40 per order
Holding cost = $6 per unit per year
Lead-time = 2 weeks
Standard deviation in weekly demand = 100 units
Cycle-service level = 80%
If Q is made equal to the EOQ,what are the desired values for Q and R?

• A)Q is between 65 and 69,and R is between 398 and 402.
• B)Q is between 65 and 69,and R is between 362 and 366.
• C)Q is between 439 and 443,and R is between 678 and 682.
• D)Q is between 439 and 443,and R is between 559 and 563.

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Definitions:

Nuclear Power Plants

Complexes that convert energy from nuclear fission into electrical energy, being a significant source of base-load electricity with low greenhouse gas emissions.

Mothballing

The practice of temporarily shutting down a facility or equipment but maintaining it in a condition that allows its future reuse.

Immediate Retrofitting

The quick adaptation or upgrading of existing structures or systems to improve efficiency, performance, or compliance with current standards and regulations.

Spent Fuel Reprocessing

The chemical treatment of used nuclear fuel to extract usable elements such as uranium and plutonium for re-use in reactors.