Multiple Choice
Table 5.11
The following information has been collected on an independent demand item:
Demand units per week (assume 52 weeks/ year)
Ordering and setup cost per order
Holding cost per unit per year
Lead time week
Standard deviation in weekly demand units
Cycle-service level
You will need to refer to a normal table to answer the question(s) .
-Use the information from Table 5.11.Design a periodic review system (P system) ,with P = 5 weeks.What target inventory T will provide the desired 90 percent cycle-service level?
A) between 53 and 57 units
B) between 172 and 176 units
C) between 188 and 192 units
D) between 202 and 206 units
Correct Answer:

Verified
Correct Answer:
Verified
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