Table
A firm using the periodic review system (P system) reviews the status of an item every 4 weeks. The standard deviation in weekly demand is 60 units. The lead time for the item is 3 weeks, whereas demand averages 200 units per week. You will need to refer to a normal table to answer the question(s) .
-Use the information in Table 5.10. Suppose the firm decides on a safety stock (B) of 245 units. It is time to review the item, and the current inventory position is 700 units. How many units should be ordered? (Hint: Before answering this question, you must first compute T, the target inventory level.)
A) less than or equal to 900 units
B) greater than 900 but less than or equal to 950 units
C) greater than 950 but less than or equal to 1000 units
D) greater than 1000 units
Correct Answer:
Verified
Q7: Which one of the following is NOT
Q8: Table
Q9: Which one of the following statements about
Q10: Table
Q11: Which of the following statements regarding a
Q13: Which one of the following statements concerning
Q14: The following information has been collected
Q15: One of the secondary levers for reducing
Q16: Table
Q17: Table
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents