Jan Tuttle Is the Inventory Manager of an Art Supply

question 15

Multiple Choice

Jan Tuttle is the inventory manager of an art supply store.She uses a periodic review system for all oil paints.The number of periods between orders (P) for red #68 is 15 workdays.(The store operates 50 weeks per year,five workdays per week. ) Additional information concerning red #68 follows. Demand = 30 units/workday
Standard deviation of daily demand = 4 units/workday
Lead-time = 7 workdays
Desired cycle-service level = 85%
A normal distribution table is appended to this exam.
What is the target inventory level T for red #68?

• A)less than or equal to 550 units
• B)greater than 550 but less than or equal to 600 units
• C)greater than 600 but less than or equal to 650 units
• D)greater than 650 units

---

Definitions:

Marketing Metrics

Quantitative measures used to monitor, evaluate, and guide the effectiveness of marketing strategies and campaigns.

Financial Indicator

Quantitative measures used to assess the financial health, performance, and stability of a business or investment.

Same-Store Sales Growth

Refers to the revenue increase from a retailer's existing outlets over a given period, eliminating effects from new store openings.

Sales Per Square Foot

A retail metric that measures the efficiency of a retail space by dividing total sales by the total floor area of retail space.