Scenario 9.7
You are the operations manager of a firm that uses the continuous-review inventory control system.Suppose the firm operates 52 weeks a year,365 days,and has the following characteristics for its primary item:
Demand = 25,000 units/year
Ordering cost = $30/order
Holding cost = $8/unit/year
Lead time = 2 weeks
Standard deviation in weekly demand = 100 units
A normal distribution table is appended to this exam.
-Use the information in Scenario 9.7.What is the length of their order cycle if they order the economic order quantity each time?
A) less than or equal to 4 days
B) greater than 4 days but less than or equal to 5 days
C) greater than 5 days but less than or equal to 6 days
D) greater than 6 days
Correct Answer:
Verified
Q131: Scenario 9.9
Demand = 5,200 units/year
Standard deviation of
Q132: Your firm uses a continuous review system
Q133: Cynthia Korinsky,manager of a large medical supply
Q134: Scenario 9.7
You are the operations manager of
Q135: Scenario 9.7
You are the operations manager of
Q137: Scenario 9.9
Demand = 5,200 units/year
Standard deviation of
Q138: Scenario 9.10
Demand = 52,000 units/year
Standard deviation of
Q139: Scenario 9.10
Demand = 52,000 units/year
Standard deviation of
Q140: Scenario 9.11
The Hastings Company is a nation-wide
Q141: Scenario 9.13
Demand = 100,000 units/year
Number of days
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