Table 511
the Following Information Has Been Collected on an Independent

Multiple Choice

Table 5.11
The following information has been collected on an independent demand item:
Demand $= 30$ units per week (assume 52 weeks/ year)
Ordering and setup cost $= \$ 50$ per order
Holding cost $= \$ 8$ per unit per year
Lead time $= 1$ week
Standard deviation in weekly demand $= 8$ units
Cycle-service level $= 90 \%$
You will need to refer to a normal table to answer the question(s) .
-Use the information from Table 5.11.Design a continuous review system (Q system) for this item,making Q equal to the EOQ.Assume that the demand during lead time is normally distributed.What are the desired values for Q and R?

A) Q is between 138 and 142, and R is between 34 and 38.
B) Q is between 121 and 125, and R is between 80 and 84.
C) Q is between 138 and 142, and R is between 39 and 42.
D) Q is between 121 and 125, and R is between 53 and 57.