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 15 units, 3 days between inventory reviews, 1 day for lead time, 30 units of inventory on hand, a service probability of 98 percent, and a standard deviation of daily demand is 3 units, which of the following is the order quantity?

A) About 30.4
B) About 36.3
C) About 42.3
D) About 56.8
E) About 59.8