Assuming 300 working days in a year, what is the time between the placement of two consecutive orders?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Suppose that a firm applies the continuous-
review inventory model to management its
inventory of a product. Daily demand follows
the normal distribution with mean 20 units
and standard deviation 3 units. The firm
currently uses the order size Q=500 units.
Order lead time is 4 days.
Assuming 300 working days in a year, what is
the time between the placement of two
consecutive orders?
a. 4 days
b. 12days
c. 25days
d. 30days
e.none of ghe above
Transcribed Image Text:Suppose that a firm applies the continuous- review inventory model to management its inventory of a product. Daily demand follows the normal distribution with mean 20 units and standard deviation 3 units. The firm currently uses the order size Q=500 units. Order lead time is 4 days. Assuming 300 working days in a year, what is the time between the placement of two consecutive orders? a. 4 days b. 12days c. 25days d. 30days e.none of ghe above
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