Table $5.5$
You are the operations manager of a firm that uses the continuous review inventory control system. Suppose the firm operates 52 weeks a year and has the following characteristics for its primary item:

-Use the information in Table 5.5. What safety stock level provides a 95 percent cycle- service level?
A) less than or equal to 150 units
B) greater than 150 but less than or equal to 200 units
C) greater than 200 but less than or equal to 250 units
D) greater than 250 units

Question

Table $5.5$
You are the operations manager of a firm that uses the continuous review inventory control system. Suppose the firm operates 52 weeks a year and has the following characteristics for its primary item:

-Use the information in Table 5.5. What safety stock level provides a 95 percent cycle- service level?
A) less than or equal to 150 units 
B) greater than 150 but less than or equal to 200 units 
C) greater than 200 but less than or equal to 250 units 
D) greater than 250 units

Quizplus · Accepted Answer

A 95 percent cycle-service level typically corresponds to a safety stock level that is greater than 200 but less than or equal to 250 units, based on standard inventory management practices and statistical calculations for service levels.

Table 5.55.55.5 You Are the Operations Manager of a Firm That Uses

Table $5.5$ You Are the Operations Manager of a Firm That Uses