Scenario 9.10 Demand = 52,000 Units/year

question 16

Multiple Choice

Scenario 9.10
Demand = 52,000 units/year
Standard deviation of weekly demand = 110 units
Ordering costs = $45/order
Holding costs = $0.50/unit/year
Cycle-service level = 90%
Lead time = 2 weeks
Number of weeks per year = 52 weeks
A normal distribution table is appended to this exam.
-Use the information in Scenario 9.10.If the firm changed to a continuous review system,what would be the reorder point?

• A)0 units
• B)greater than 0 but less than or equal to 1,000 units
• C)greater than 1,000 but less than or equal to 2,000 units
• D)greater than 2,000 units

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Definitions:

Target Customers

Specific groups of consumers identified as the intended recipients of a marketing campaign or the primary users of a product or service.

Value-Creating Opportunities

Situations or actions that enhance the worth of goods, services, or a business, often through innovation or by meeting emerging customer needs.

Chief Executive Officer

The highest-ranking executive in a company, responsible for making major corporate decisions and managing overall operations.

Strategy Planning

The process of defining an organization's direction and making decisions on allocating its resources to pursue this strategy, including setting goals and determining actions.