Using the Fixed-Time-Period Inventory Model, and Given an Average Daily

Multiple Choice

Using the fixed-time-period inventory model, and given an average daily demand of 75 units, 10 days between inventory reviews, 2 days for lead time, 50 units of inventory on hand, a service probability of 95 percent, and a standard deviation of demand over the review and lead time of 8 units, which of the following is the order quantity?

A) 863
B) 948
C) 1,044
D) 1,178
E) 4,510