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

question 173

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 safety stock level provides a 95% cycle-service level?

• A)less than or equal to 150 units
• B)greater than 150 but less than or equal to 200 units
• C)greater than 200 but less than or equal to 250 units
• D)greater than 250 units

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Definitions:

Expert Power

A form of power derived from possessing knowledge, skills, or expertise that others value, which can influence or control their behavior.

Referent Power

Influence based on identification with, admiration of, or respect for the power-holder.

Sources of Personal Power

The origins from which individuals derive their ability to influence others, such as expertise, charisma, or formal position.

Reward Power

The ability to influence others by offering positive incentives or rewards for desired behavior.