The Following Information Has Been Collected on an Independent Demand $= 30$

Multiple Choice

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