CheapBuy is an electronics retail chain selling Gateway netbooks. The demand for the Gateway netbook LT20 at their local store is normally distributed with a mean of 120 netbooks/week and standard deviation of 10 netbooks/week. CheapBuy orders netbooks from Gateway at unit cost of $180. The annual cost of carrying inventory at the store is 20% of the purchase cost per unit per year. It takes 2 weeks to receive a delivery. The store reviews and places an order at the start of each week. Given that the store uses the above periodic review inventory policy, which of the following statement is FALSE? [Note: Safety stock is rounded up to the nearest whole number. Regarding z values, please find them in lecture slides.] The z value associated with the 95% service level is 1.64 . Safety stock is 29 netbooks. The lead time and review cycle are in total 3 weeks. The holding cost of safety stock is $5220. If the firm wishes to increase its service level, safety stock will increase as well. A local bookstore selling textbooks and stationary items. The demand for spiral-binded notebooks at the store is constant at 5000 notebooks/year. It purchases the notebooks from a supplier at $1.5 per notebook. Each time the bookstores places an order it incurs an ordering cost of $50. The company estimates that the yearly holding cost of inventory is 18% of the unit purchasing cost. The bookstore needs your help in determining the optimal ordering policy. According to the knowledge you learned about inventory management, which of the following statement is FALSE? [Note: EOQ and annual costs are rounded up to the nearest whole numbers.] The order cycle (or time between placing orders) is 0.27 years. The annual holding cost is about $1021. The economic order quantity (EOQ) is 1361. The annual total cost is the sum of annual ordering cost and annual holding cost