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Using the Data Regarding the Inventory Management of a Stock-Keeping

Question 22

Multiple Choice

Using the data regarding the inventory management of a stock-keeping unit shown in the following table, it can be concluded that the optimal replenishment level without any safety stock for a fixed-period system (FPS) under the model assumptions is:
 Demand 100 units per week  Order Cost $30 per order  Inventory-Holding Cost $0.6 per unit per year  Lead Time 2 weeks  Economic Time Interval 5 weeks \begin{array} { | l | l | } \hline \text { Demand } & 100 \text { units per week } \\\hline \text { Order Cost } & \$ 30 \text { per order } \\\hline \text { Inventory-Holding Cost } & \$ 0.6 \text { per unit per year } \\\hline \text { Lead Time } & 2 \text { weeks } \\\hline \text { Economic Time Interval } & 5 \text { weeks } \\\hline\end{array}


A) more than 100 but less than or equal to 200 units.
B) more than 200 but less than or equal to 400 units.
C) more than 400 but less than or equal to 600 units.
D) more than 600 but less than or equal to 800 units.

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