Scenario 9.5 Cranium,Inc. ,Purchases Term Papers from an Overseas Supplier Under a Under

question 93

Multiple Choice

Scenario 9.5
Cranium,Inc. ,purchases term papers from an overseas supplier under a continuous review system.The average demand for a popular mode is 300 units a day with a standard deviation of 30 units a day.It costs $60 to process each order and there is a five-day lead-time.The holding cost for a paper is $0.25 per year and the company policy is to maintain a 98% service level.Cranium operates 200 days per year.A normal distribution table is appended to this exam.
-Use the information in Scenario 9.5.What is the standard deviation of demand throughout the five-day lead-time period?

• A)about 45 units
• B)about 67 units
• C)about 103 units
• D)about 200 units

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Definitions:

Death Instinct

A concept in psychoanalytic theory referring to an unconscious drive toward decay, destruction, and death.

Libido

A term used to describe sexual desire or drive, often considered as an instinctual component of personality in psychoanalytic theory.

Psychosexual Stages

Freud’s theory of childhood development focusing on different parts of the body as primary sources of pleasure and conflicts at each stage.

Regression

In psychoanalytic theory, retreating to an earlier, more immature stage of psychosexual development, usually because of stress but sometimes in the service of play and creativity.