Question
The following table contains information about the inventory management of a stock-keeping unit. Using this information, what is the economic time interval for securing an
The following table contains information about the inventory management of a stock-keeping unit. Using this information, what is the economic time interval for securing an optimal policy for a fixed-period system (FPS)?
Information for a Fixed-Period System Inventory Management
Demand17,000
units per yearOrder Cost$50 per order
Inventory-Holding Cost$0.5 per unit per year
Lead Time2 weeks
Standard Deviation in Weekly Demand7Service
Level95 percent
which is the following is the correct answer
a) More than 6 weeks but less than or equal to 9 weeks
B)Less than or equal to 3 weeks
C)More than 3 weeks but less than or equal to 6 weeks
D)More than 9 weeks
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