1. Describe the difference between independent and dependent demand and give an example of each for a pizza restaurant such as Pizza Hut or Pizza Company.

2. Distinguish between a fixed-order-quantity system and fixed-time-period system and give an example of each.

3. The Wallace Stationary Company purchases paper from the Seaboard Paper Company. Wallace produces stationary that requires 1,415,000 square yards of paper per year. The cost per order for the company is $2,200; the cost of holding one yard of paper in inventory is $0.08 per year. Determine the following:

a. Economic order quantity

b. Minimum total annual cost

c. Optimal number of orders per year

d. Optimal time between orders

4. Kelly's Tavern serves Shamrock draft beer to its customers. The daily demand for beer is normally distributed, with an average of 20 gallons and a standard deviation of 4 gallons. The lead time required to receive an order of beer from the local distributor is 12 days. Determine the safety stock and reorder point if the restaurant wants to maintain a 90% service level. What would be the increase in the safety stock if a 95% service level were desired?

5. KVS Pharmacy fills prescriptions for a popular children's antibiotic, Amoxycilin. The daily demand for Amoxycilin is normally distributed with a mean of 200 ounces and a standard deviation of 80 ounces. The vendor for the pharmaceutical firm that supplies the drug calls the drugstore's pharmacist every 30 days and checks the inventory of Amoxycilin. During a call the druggist indicated that store had 60 ounces of the antibiotic in stock. The lead time to receive an order is four days. Determine the target inventory level and the order size that will enable the drugstore to maintain a 99% service level.

6. What options are available for altering the capacity of (a) an elementary school, (b) a prison, and (c) an airline?

7. Discuss the advantages and disadvantages of using part-time workers, subcontracting work, and building up inventory as strategies for meeting demand.

8. How is the aggregate planning process different when used for services rather than for manufacturing?