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Table 5.95.9 Demand =140= 140 Units/week
Standard Deviation in Weekly Demand =21= 21

Question 160

Multiple Choice

Table 5.95.9
Demand =140= 140 units/week
Standard deviation in weekly demand =21= 21 units
Ordering cost =$20= \$ 20 /order
Holding cost =$1= \$ 1 per unit per year
Cycle-service level =85= 85 percent
Lead time =6= 6 weeks
You will need to refer to a normal table to answer the question(s) .
-Use the information in Table 5.9. Design a periodic review system with P = 4 weeks. Assume demand during lead time plus review period to be normally distributed. What target inventory will provide the desired cycle- service level of 85 percent?


A) less than or equal to 1400 units
B) greater than or equal to 1400 but less than or equal to 1425 units
C) greater than 1425 but less than or equal to 1450 units
D) greater than 1450 units

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