Table $5.9$ Demand $= 140$ Units $/$ Wee K
Standard Deviation in Weekly Demand

Multiple Choice

Table $5.9$
Demand $= 140$ units $/$ wee k
Standard deviation in weekly demand $= 21$ units
Ordering cost $= \$ 20 /$ order
Holding cost $= \$ 1$ per unit per year
Cycle- service level $= 85$ percent
Lead time $= 6$ weeks
You will need to refer to a normal table to answer the question(s) .
-Use the information in Table 5.9. Assume demand during lead time to be normally distributed. For a continuous review system, what should be the reorder point (R) ?

A) less than or equal to 870
B) greater than or equal to 870 but less than or equal to 900
C) greater than 900 but less than or equal to 930
D) more than 930