Scenario 9.10 Demand = 52,000 Units/year

Scenario 9.10
Demand = 52,000 units/year
Standard deviation of weekly demand = 110 units
Ordering costs = $45/order
Holding costs = $0.50/unit/year
Cycle-service level = 90%
Lead time = 2 weeks
Number of weeks per year = 52 weeks
A normal distribution table is appended to this exam.
-Use the information in Scenario 9.10.What is the EOQ for this item?

A) greater than 0 but less than or equal to 1,500 units
B) greater than 1,500 but less than or equal to 3,000 units
C) greater than 3,000 but less than or equal to 4,500 units
D) greater than 4,500 units

Correct Answer:

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