#1 - EShack sells an ergonomic keyboard in one of its stores. Average weekly demand for this keyboard follows a Poisson distribution with mean 0.8 unit. It submits orders to the supplier weekly and the supplier delivers with a two-week lead time.

A) Suppose it uses an order-up-to level of nine. What is its expected on-hand inventory?

a) 6.6

b) 7.3

c) 8.4

d) 9.1

B) Suppose it uses an order-up-to level of six. What is its expected on-order inventory?

a) 0.8

b) 1.6

c) 2.0

d) 2.4

C) Suppose it uses an order-up-to level of seven. What is its in-stock probability?

a) 0.0024

b) 0.4084

c) 0.6238

d) 0.9976