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Table 5.75.7 Demand =5200= 5200 Units/year
Standard Deviation of Weekly De Mand =11= 11

Question 102

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Table 5.75.7
Demand =5200= 5200 units/year
Standard deviation of weekly de mand =11= 11 units
Ordering costs =$45/= \$ 45 / order
Holding costs =$2/= \$ 2 / unit/year
Cycle-service level =90%(= 90 \% ( z for 90%=1.28) 90 \% = 1.28 )
Lead time =3= 3 weeks
Number of weeks per year =52= 52 weeks
-Use the information in Table 5.7. If a firm uses the continuous review system to control the inventory, what would be the reorder point?


A) 0 units
B) greater than 0, but less than or equal to 300 units
C) greater than 300 but less than or equal to 600 units
D) greater than 600 units

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