Scenario 9.13 Demand = 100,000 Units/year

question 169

Multiple Choice

Scenario 9.13
Demand = 100,000 units/year
Number of days per year = 250 weeks
Standard deviation of weekly demand = 50 units
Average lead time = 5 days
Standard deviation of lead time: 2 days
Cycle-service level = 99%
A continuous review system is used to control inventory.
A normal distribution table is appended to this exam.
-Use the information in Scenario 9.13.What safety stock should the firm use for this product?

• A)greater than 0 but less than or equal to 500 units
• B)greater than 500 units but less than or equal to 1,500 units
• C)greater than 1,500 units but less than or equal to 2,500 units
• D)greater than 2,500 units

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Definitions:

Zygote

The first cell created through the fusion of an egg cell and a sperm cell, signifying the start of a new organism's growth.

Placenta

An organ that develops in the uterus during pregnancy, providing oxygen and nutrients to the growing fetus while removing waste products through the umbilical cord.

Primitive Duct Structures

Initial embryonic tubes which will later develop into various organs and systems in the body.

Wolffian

Referring to the embryonic duct system that, if stimulated by male hormones, develops into the male reproductive organs.