In a single-period model, if the demand is normally distributed with a mean of 97 and a standard deviation of 25, and the optimal service level is 75%, what is the optimal order quantity? a. 72 b. 93 c. 123 d. 114 e. 80

I run a Ford car dealership, and I experience known and constant demand for cars. I sell 10,000 cars annually. The cost of ordering is $819, and the annual cost of holding a car on the lot is $500. What is the economic ordering quantity (EOQ)? Round to the nearest whole number (so if your answer is 443.363, round to 443)

A health and nutrition store stocks a multivitamin with an annual demand of 1,000 bottles has Co probability distribution with μ = 25 and σ = 5. (a) What is the recommended order quantity? (Round your answer to the nearest integer.) = $23.50 and C = $9. The demand exhibits some variability such that the lead-time demand follows a normal (b) What are the reorder point and safety stock if the store desires at most a 4% probability of stock-out on any given order cycle? (Round your answers to the nearest integer.) reorder point safety stock (c) If a manager sets the reorder point at 30, what is the probability of a stock-out on any given order cycle? (Round your answer to four decimal places.) How many times would you expect a stock-out during the year if this reorder point were used? (Round your answer to the nearest integer.)

44 Which of these statements about the production order quantity model is FALSE? Select one: a. The production order quantity model is appropriate when the assumptions of the basic EOQ model are met, except that receipt is noninstantaneous. b. Because receipt is noninstantaneous, some units are used immediately and not stored in inventory. c. All else equal, the smaller the ratio of demand rate to production rate, the larger is the production order quantity. d. Average inventory is less than one-half of the production order quantity. e. None of the above is false.

A bakery uses 1000 bags of flour a year.  It costs $50 to order, and holding costs are $5 per bag on an annual basis. What is the optimal order quantity?   a. 350 b. 400 c. 141 d. 200 e. 245

Paulin’s muffler shop has one standard muffler that fits a large variety of cars. The shop wishes to establish a periodic review system to manage inventory of this standard muffler. Use the information table to determine the optimal inventory target level (or order-up to level).  Annual demand    3,910 mufflers    ordering cost             $75 per order  S/D of daily demand     6 mufflers/wk. day   service probability          87%  Item cost        $ 27.00 per muffler             lead time                      2 wk. Days  Annual holding cost       36 % of item value  wk. Days              230 per year Review period        18 working days       What is the optimal target levels (order up to levels) use excels NORMSINVI() function to find the correct critical value for the given a-level. Do not round intermediate calculations. Round value 2 decimal places and final answer to the nearest whole number If the service probability is 90%, the optimal target level will increase, decrease or…

3.  Skinner’s Fish Market buys fresh Boston bluefish daily for $4.20 per pound and sells it for $6 per pound. At the end of each business day, any remaining bluefish is sold to a producer of cat food for $3 per pound. Daily demand can be approximated by a normal distribution with a mean of 64 pounds and a standard deviation of 11 pounds. What is the optimal order quantity (stocking level)? Round your answer to 2 decimal places.  Answer:_______

At Matthews Car Repair, customer demand for a certain brand of motor oil is normally distributed with a mean of 15 gallons and a standard deviation of 6 work-days. To be 95% sure that Compact Car Repair will not run out of oil, we should reorder when motor oil in stock is less than _______ gallons. a. 24.9 b. 22.6 c. 23.7 d. 20

I run a Ford car dealership, and I experience known and constant demand for cars. I sell 10,000 cars annually. The cost of ordering is $1,108, and the annual cost of holding a car on the lot is $500. What is the economic ordering quantity (EOQ)? Round to the nearest whole number (so if your answer is 443.363, round to 443)

With a normal demand and normal lead-time, increasing the order lead-time results in which of the following? Lower expected costs. Higher service levels. Higher stockout probability. All of the above.