Scenario 9.9 Demand = 5,200 Units/year

question 55

Multiple Choice

Scenario 9.9
Demand = 5,200 units/year
Standard deviation of weekly demand = 11 units
Ordering costs = $45/order
Holding costs = $2/unit/year
Cycle-service level = 90% (z for 90% = 1.28)
Lead-time = 3 weeks
Number of weeks per year = 52 weeks
-Use the information in Scenario 9.9.The firm decided to change to the periodic review system to control the item's inventory.For the most recent review,an inventory clerk checked the inventory of this item and found 500 units.There were no scheduled receipts at the time.How many units should be ordered? (HINT: Use the EOQ model to derive P,the time between reviews. )

• A)0 units
• B)greater than 0 but less than or equal to 300 units
• C)greater than 300 but less than or equal to 600 units
• D)greater than 600 units

Grasp the principles of Kohlberg's stages of moral development and their applicability to societal norms.

Distinguish between different parenting styles and their implications for child development and behavior.

Understand the theory and concept of flashbulb memories and how emotional significance can enhance memory retention.

Grasp the fundamental processes involved in memory including encoding, storage, and retrieval.

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Definitions:

Process Cost System

A method of accounting used for goods that are produced continuously or in mass quantities, allocating costs to units of product.

Conversion Costs

The costs required to convert raw materials into finished goods, typically including both labor costs and manufacturing overhead.

Production Cost Report

A detailed report outlining the total cost and production quantities of goods during a specific period.

Conversion Cost

The combined costs of direct labor and manufacturing overheads that are incurred to convert raw materials into finished goods.