Exhibit 12.3
The following questions use the information below.
An auto parts store wants to simulate its inventory system for engine oil. The company has collected data on the shipping time for oil and the daily demand for cases of oil. A case of oil generates a $10 profit. Customers can buy oil at any auto parts store so there are no backorders (the company loses the sale and profit). The company orders 30 cases whenever the inventory position falls below the reorder point of 15 cases. Orders are placed at the beginning of the day and delivered at the beginning of the day so the oil is available on the arrival day. An average service level of 99% is desired. The following spreadsheets have been developed for this problem. The company has simulated 2 weeks of operation for their inventory system. The current level of on-hand inventory is 25 units and no orders are pending.
-Using the information in Exhibit 12.3, what formula should go in cell C9 and copied to C10:C21 of the MODEL sheet to compute units received?
A) =COUNT($J$8:J8,A9)*$D$4
B) =COUNTIF($J$8:J8,A8)*$C$4
C) =COUNTIF($J$8:J8,A9)*$D$5
D) =COUNTIF($J$8:J8,A9)*$D$4

Question

Exhibit 12.3
The following questions use the information below.
An auto parts store wants to simulate its inventory system for engine oil. The company has collected data on the shipping time for oil and the daily demand for cases of oil. A case of oil generates a $10 profit. Customers can buy oil at any auto parts store so there are no backorders (the company loses the sale and profit). The company orders 30 cases whenever the inventory position falls below the reorder point of 15 cases. Orders are placed at the beginning of the day and delivered at the beginning of the day so the oil is available on the arrival day. An average service level of 99% is desired. The following spreadsheets have been developed for this problem. The company has simulated 2 weeks of operation for their inventory system. The current level of on-hand inventory is 25 units and no orders are pending.   
-Using the information in Exhibit 12.3, what formula should go in cell C9 and copied to C10:C21 of the MODEL sheet to compute units received?
A) =COUNT($J$8:J8,A9)*$D$4 
B) =COUNTIF($J$8:J8,A8)*$C$4 
C) =COUNTIF($J$8:J8,A9)*$D$5 
D) =COUNTIF($J$8:J8,A9)*$D$4

Quizplus · Accepted Answer

The formula should calculate the number of units received based on the order quantity (30) and the number of times an order was placed for a given day's demand. This is exactly what option D does by using the COUNTIF function to count the number of times the current day's demand (cell A9) appears in the range of previous demand values (J8:J8) and then multiplying it by the order quantity (D4). This formula can then be copied down to calculate units received for each day in the simulation.

Exhibit 12.3 The Following Questions Use the Information Below