Annual Demand	90,000	units/year
Daily forecast error, standard deviation	500	units/day
Lead time	6	days
Carrying Costs	10%
Purchase price, delivered	$80	per unit
Replenishment order cost	$650	per order
Probability of being in stock during lead time	90.0%

1. Inventory is reviewed every 15.51 days. What is X', the average demand during the reorder period plus lead time?

- 1,479 units

- 7,816 units

- 3,824 units

- 8,276 units

- 6,189 units

- 5,304 units

- 8,497 units

2. You construct a Periodic Review model and calculate the variables below. What is the inventory policy?

T*	37	days
X'	50
s'	10
z	0.8
q	current on hand

- Every 58 days, order (37 - q) units.

- Every 58 days, order 37 units.

- Every 37 days, order (58 - q) units.

- Every 37 days, order 58 units.