Scenario 9.8 Peterson Enterprises Uses a Continuous Review Inventory Control System.The Firm

question 137

Multiple Choice

Scenario 9.8
Peterson Enterprises uses a continuous review inventory control system.The firm operates 50 weeks per year and has the following characteristics for an item:
Demand = 50,000 units/year
Ordering cost = $35/order
Holding cost = $2/unit/year
Lead-time = 3 weeks
Standard deviation in weekly demand = 125 units
A normal distribution table is appended to this exam.
-Use the information in Scenario 9.8.If Peterson wishes to provide a 90% cycle-service level,what is the reorder point?

• A)less than or equal to 2,700 units
• B)greater than 2,700 but fewer than or equal to 3,100 units
• C)greater than 3,100 but fewer than or equal to 3,500 units
• D)greater than 3,500 units

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Definitions:

Overt Aggression

Visible, external acts of aggression, such as physical violence or verbal threats, as opposed to covert or internalized forms.

Covert Aggression

A form of aggression where the aggressive acts are hidden or disguised, making it less obvious to others.

Normative Social Influence

The influence other people have on us because we want them to like us.

Comparison Effect

The phenomenon where an individual's evaluation of their own abilities, achievements, or conditions is influenced by comparisons with others.