Scenario 12.1 - Charm City

Multiple Choice

Scenario 12.1 - Charm City
Avon Barksdale's operation uses large quantities of prepaid cell phones,on average 500 per week with a standard deviation of 45.The lead time for their own brand of prepaid cell phones is two weeks and they have a lot size of 125 phones.
-Suppose Mr.Barksdale sets his reorder point at 1100 phones.What is his average cell phone inventory?

A) 87.5 phones
B) 105 phones
C) 162.5 phones
D) 257.5 phones