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Table 5.95.9 Demand =140= 140 Units/week
Standard Deviation in Weekly Demand =21= 21

Question 39

Multiple Choice

Table 5.95.9
Demand =140= 140 units/week
Standard deviation in weekly demand =21= 21 units
Ordering cost =$20= \$ 20 /order
Holding cost =$1= \$ 1 per unit per year
Cycle-service level =85= 85 percent
Lead time =6= 6 w eeks

You will need to refer to a normal table to answer the question(s) .
-Use the information in Table 5.9. Design a continuous review system making Q equal to EOQ. What will be the economic order quantity (EOQ) ?


A) less than or equal to 560
B) greater than or equal to 560 but less than or equal to 575
C) greater than 575 but less than or equal to 590
D) more than 590

Correct Answer:

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