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The Company Is Currently Conducting an Inventory Review

Question 2

Multiple Choice

The company is currently conducting an inventory review.Calculate the target inventory value (T) and the current order size for a P-system.(T/size)
The expected weekly demand is 1250 units.The standard deviation for a week is 250 units.The TBR 4 weeks and the lead time is 1 week.The cycle service level is 94%.After review, it is shown that there are 1260 units on hand.


A) 6600 units/5340 units
B) 7120 units/5860 units
C) 5860 units/4600 units
D) 4600 units/3340 units

Correct Answer:

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