Scenario 9.11
The Hastings Company is a nation-wide wholesaler for small electronic devices.One of its most popular items is a calculator,the "Whizz-Bang 1100".Hastings's demand,lead time and cycle service requirements for the W-B 1100 are as follows:
Demand = 25,000 units/year
Number of weeks per year = 50 weeks
Standard deviation of weekly demand = 100 units
Average lead time = 6 weeks
Standard deviation of lead time: 2 weeks
Cycle-service level = 85%
Hastings uses a continuous review system to control inventory.
A normal distribution table is appended to this exam.
-Use the information in Scenario 9.11.What is the standard deviation of demand during lead time?
A) greater than 0 but less than or equal to 100 units
B) greater than 100 but less than or equal to 500 units
C) greater than 500 but less than or equal to 1,000 units
D) greater than 1,000 but less than or equal to 1,500 units
E) greater than 1,500 units
Correct Answer:
Verified
Q121: Jan Tuttle is the inventory manager of
Q122: Scenario 9.7
You are the operations manager of
Q123: Scenario 9.7
You are the operations manager of
Q124: Scenario 9.11
The Hastings Company is a nation-wide
Q125: Scenario 9.8
Peterson Enterprises uses a continuous review
Q127: Scenario 9.8
Peterson Enterprises uses a continuous review
Q128: Scenario 9.10
Demand = 52,000 units/year
Standard deviation of
Q129: Scenario 9.7
You are the operations manager of
Q130: Scenario 9.11
The Hastings Company is a nation-wide
Q131: Scenario 9.9
Demand = 5,200 units/year
Standard deviation of
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