Your Firm Uses a Continuous Review System (Q System), Where $= 14,560$

Multiple Choice

Your firm uses a continuous review system (Q system) , where the inventory position is updated after every transaction. The firm operates 52 weeks per year. One of the items has the following characteristics:
Demand $= 14,560$ units per year
Ordering cost $= \$ 40$ per order
Holding cost $= \$ 6$ per unit
per year Lead time $= 2$ weeks
Standard deviation in weekly demand $= 100$ units
Cycle-service level $= 80$ percent
If Q is made equal to the EOQ, what are the desired values for Q and R?

A) Q is between 65 and 69, and R is between 362 and 366.
B) Q is between 439 and 443, and R is between 559 and 563.
C) Q is between 439 and 443, and R is between 678 and 682.
D) Q is between 65 and 69, and R is between 398 and 402.