Answer the questions below.

Given the following inventory system: average weekly (7 days a week) demand is 1000 units with a standard deviation of 100 units, order interval is 14 days, lead time is 7 days and the target service probability is 90%. Currently, inventory on hand is 50 units. What is the safety stock and the order quantity? 286 and 5,237 222 and 3,172 314 and 6,264 O 587 and 21,537 515 and 5,745 A manager orders motor oil when the amount on-hand reaches 255 pounds. Average daily usage is 40 pounds with standard deviation of 15 pounds. Lead-time is five days. What is the safety stock and the probability of stocking out in a cycle? 55 and 0.9495 40 and 0.0505 30 and 0.25 40 and .9495 55 and 0.0505 A product has an average daily demand of 400 units with standard deviation of 50 units. Lead-time is 3 days. If management would like to satisfy all demand in 80% of the cycles, what is the reorder point? 1242 O 1323 1108 1051 In a single period model, if shortage cost is three times excess cost, then the optimum service level is A metal working company is purchasing an industrial furnace for one of its plants. The company has the option of buying spare compressors from the manufacturer for $6000 per unit if purchased with the furnace. If the compressors are not purchased with the furnace, they can be purchased later at the retail price of $8000 per unit. Any compressors purchased with the furnace and not used can be returned to the manufacturer for a refund of $4000 per unit. Compressors fail according to the following probability distribution How many compressors should be purchased with the furnace? 4 3 What service level (probability of satisfying demand) should the retail drug chain provide? What is the Z value that corresponds to the service level in the previous question? 0.64 0.36 0.25 0 0.36 Given the following inventory system: average weekly (7 days a week) demand is 1000 units with a standard deviation of 100 units, order interval is 14 days, lead time is 7 days and the target service probability is 90%. Currently, inventory on hand is 50 units. What is the safety stock and the order quantity? 286 and 5,237 222 and 3,172 314 and 6,264 O 587 and 21,537 515 and 5,745 A manager orders motor oil when the amount on-hand reaches 255 pounds. Average daily usage is 40 pounds with standard deviation of 15 pounds. Lead-time is five days. What is the safety stock and the probability of stocking out in a cycle? 55 and 0.9495 40 and 0.0505 30 and 0.25 40 and .9495 55 and 0.0505 A product has an average daily demand of 400 units with standard deviation of 50 units. Lead-time is 3 days. If management would like to satisfy all demand in 80% of the cycles, what is the reorder point? 1242 O 1323 1108 1051 In a single period model, if shortage cost is three times excess cost, then the optimum service level is A metal working company is purchasing an industrial furnace for one of its plants. The company has the option of buying spare compressors from the manufacturer for $6000 per unit if purchased with the furnace. If the compressors are not purchased with the furnace, they can be purchased later at the retail price of $8000 per unit. Any compressors purchased with the furnace and not used can be returned to the manufacturer for a refund of $4000 per unit. Compressors fail according to the following probability distribution How many compressors should be purchased with the furnace? 4 3 What service level (probability of satisfying demand) should the retail drug chain provide? What is the Z value that corresponds to the service level in the previous question? 0.64 0.36 0.25 0 0.36