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:

Electrical Current

The flow of electric charge through a conductor or circuit, typically measured in amperes.

Flow

In electrical contexts, flow refers to the movement or circulation of electric current through a conductor or circuit.

Semiconductor

A material that contains four valence electrons and is used in the production of solid-state devices.

Valence Electrons

The electrons in an atom's outer shell, which determine the chemical properties of the element and its reactivity.