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An electronics superstore is carrying a 60 LEDTV for the upcoming Christmas holiday sales. The optimal service level is 30%. The period of sales is

An electronics superstore is carrying a 60 LEDTV for the upcoming Christmas holiday sales. The optimal service level is 30%. The period of sales is normally distributed with an average 5 weeks, and standard deviation of 1.3 weeks. Demand per week is fixed and is 20 units. One of the following formulas may be useful. Sigma(LTD) = SQRT(L)*Sigma(R). Sigma(LTD) = R*Sigma(L).

1. Compute the average demand during the sales period.

The potential answers are:

A: 120 units

B: 105 units

C: 270 units

D: 200 units

E: 100 units

2. Compute the standard deviation of demand during the sales period.

A: 32.5 units

B: 35 units

C: 26 units

D: 81 units

E: 37.5 units

3. How many units should we order to retain the optimal service level (roundup)?

The potential answers are:

A: 216

B: 153

C: 147

D: 171

E: 87

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