Table
The following information has been collected on an independent demand item:
Demand units per week
(assume 52 weeks/ year)
Ordering and setup cost perorder
Holding cost per unit per year
Lead time week
Standard deviation in weekly demand units
Cycle- service level
You will need to refer to a normal table to answer the question(s) .
-Use the information from Table 5.11. Design a periodic review system (P system) , with P = 5 weeks. What target inventory T will provide the desired 90 percent cycle- service level?
A) between 188 and 192 units
B) between 53 and 57 units
C) between 172 and 176 units
D) between 202 and 206 units
Correct Answer:
Verified
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