Demand for an Item Is 1000 Units Per Week, with a Standard

Multiple Choice

Demand for an item is 1000 units per week, with a standard deviation in weekly demand of 60 units. The lead time is 2 weeks. The company wants to maintain an 88 percent cycle- service level. Assume demand during lead time to be normally distributed. For a continuous review system, what should be the reorder point? A normal table is attached at the end of this exam.

A) less than or equal to 2075
B) greater than 2075 but less than or equal to 2085
C) greater than 2085 but less than or equal to 2095
D) greater than 2095