Scenario 9.12 Demand = 50,000 Units/week

question 106

Multiple Choice

Scenario 9.12
Demand = 50,000 units/week
Standard deviation of weekly demand = 15,000 units
Average lead time = 8 weeks
Standard deviation of lead time: 3 weeks
Cycle-service level = 80%
A continuous review system is used to control inventory.
A normal distribution table is appended to this exam.
-Use the information in Scenario 9.12.What reorder point should the firm use for this product?

• A)greater than 0 but less than or equal to 150,000 units
• B)greater than 150,000 units but less than or equal to 300,000 units
• C)greater than 300,000 units but less than or equal to 400,000 units
• D)greater than 400,000 units but less than or equal to 500,000 units
• E)greater than 500,000 units

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Definitions:

Unionism

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HR Manager

A professional responsible for overseeing the human resources department, which includes tasks such as recruiting, training, performance management, and ensuring compliance with labor laws.