Unplanned inventory decreases:​tend to result in a decrease in income.​tend to result in an increase in real output.​tend to further reduce production.​signal that demand was weaker than expected.

Coca Cola in Turkey manages its products' inventory at Shell gas stations, that is Coca Cola, decides replenishment time and the order quantities for all its products. Shell sends real-time sales data of Coca Cola products at its gas station stores and as part of this agreement Coca Cola gives a certain percentage discount in the prices it charges to Shell. Based on what we learned in class, choose the correct statement(s): O a. Because Shell owns the stores it is more likely to make better forecasts of the demand for Coca Cola products Ob. This agreement is a strategy to reduce the bullwhip effect Oc. The main purpose of VMI is to reduce lead time in supply chains O d. This is known as vendor-managed inventory (VMI)

Henrique​ Correa's bakery prepares all its cakes between 4 A.M.and 6 A.M.so they will be fresh when customers arrive. Day-old cakes are virtually always​ sold, but at a​ 50% discount off the regular ​$8 price. The cost of baking a cake is ​$5​,and demand is estimated to be normally​ distributed, with a mean of 25  and a standard deviation of 7. What is the optimal stocking​ level?

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.)