Scenario 9.8
Peterson Enterprises uses a continuous review inventory control system.The firm operates 50 weeks per year and has the following characteristics for an item:
Demand = 50,000 units/year
Ordering cost = $35/order
Holding cost = $2/unit/year
Lead-time = 3 weeks
Standard deviation in weekly demand = 125 units
A normal distribution table is appended to this exam.
-Use the information in Scenario 9.8.What is the EOQ for this item?
A) less than or equal to 1,100 units
B) greater than 1,100 but less than or equal to 1,200 units
C) greater than 1,200 but less than or equal to 1,300 units
D) more than 1,300 units
Correct Answer:
Verified
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
Q126: Scenario 9.11
The Hastings Company is a nation-wide
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
Q132: Your firm uses a continuous review system
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