Scenario 9.13 Demand = 100,000 Units/year

question 69

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.If the firm decides to reduce its cycle-service level to 95%,what is the new reorder point if all other parameters remain the same for this product?

• A)greater than 4,500 units
• B)greater than 3,500 units but less than or equal to 4,500 units
• C)greater than 2,500 units but less than or equal to 3,500 units
• D)greater than 1,500 units but less than or equal to 2,500 units
• E)greater than 0 but less than or equal to 1,500 units

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Definitions:

Negotiating Tactic

Specific methods or techniques used during negotiations to persuade the opposing party or achieve strategic advantages.

Persuasive Style

The approach or method adopted to convincingly present arguments or ideas to influence others.

Metaphors

Figurative language used to represent objects, actions, or ideas in such a way that it implies a resemblance, conveying a meaning not explicitly stated.

Language Intensity

The degree of emotion and power used in oral or written communication, affecting the message's effectiveness and reception.