Q1: (Q, R): A supplier sells a popular auto part to car dealers. The weekly demand is approximately normal with the historical distribution of D~N(63, 25) units over a 45-week operating year. The supplier pays $26 for each unit and sells each for $41. In addition, they estimate that the annual holding cost is 30 percent of the unit's cost (to the supplier). It costs approximately $25 to place an order (managerial and clerical costs). Assume a four-week lead time.

What is the distribution of the demand during lead time?

Q2: Consider the distribution of the demand during lead time from question seven. What is the chance of the demand level during lead time exceeding 262 units?

Q3: What is the holding cost, h?

Q4: What is the average annual demand, ?

Q5: What is the economic (optimal) order quantity, EOQ?

Q6: What is the annual inventory cost at the EOQ?

Q7: What is the order frequency (average number of orders placed per year) at the EOQ?

Q8: Suppose the order costs are expected to increase and the supplier now wishes to order 270 units at a time (instead of the EOQ derived in question 5). What is the unit ratio, ?

Q9: Using your answer to the above question, what is the cost coefficient ratio (effect on cost) of ordering Q*=270 units instead of Q* units?

Q10: Given your answer to questions nine through 11, what is the per-unit cost of a surplus, C+?

Q11: Using the average unit cost c and revenue r (provided in the scenario) along with your answer to the above question, what is the optimal service level, SL*?

Q12: Considering the above question, what is the safety stock required per order at the optimal service level?

Q13: Suppose we relaxed the service level requirement to only 0.9192 (or a corresponding Z-score of 1.4). What is the safety stock required per order at this service level?

Sertion 2 What it the datrecton of tre demand durne tad tiret 1=2.5 percent 1c. Mipercert d. Sa perient Whet ii tre houtrg cortht tisi C 97A at 1123 What a the nerest ornus des and M! 134 pirti (1) it1s pute 1c. 13300ets a. 232 poti Ahat i P+ tcoroms setmal Grde evavet toO: What is the annuai inventory cost at the EOQ? 3. 5221,7 b. $2,921.7 ci 5334,2 d. 51,051.5 What is the order frequency (average number of orders placed per year) at the ECQ? a. 21 orders per year b. 5 otders per year c. 13 orders per year d. 9 orders peryear Suppose the order costs are expected to increase and the suppliec now wishes to order 270 unhts at a t.me (instead of the goa cerived in question 11 ). What is the unit ratio, vir a. 2 b. 4 Using your anawer to the above question, what is the cost coefficient ratio (effect on cost) of ordering yQ" 270 units instead of Q* anits? a. 1,25 b. 4.5 c. 3.5 d. 2.75 Gven your answer to guestions nine thirough 11, what is the per unit cost of a surplas, C ? Using the average unit cost e and revenue r (provided in the scenano) aiong with your ansider to the above queit an ahst a the optimal service ieve, Sh." a. 0953 . b. 0.925 c. 0.9486 a. 0.9759 Considering the above quertion what is the uadety stock reqaired per order at the cot inal uevice ifveif 14 parts b. 16 peits c 29pets ic. 18 parts a. 14 parts b. 16 osrts c. 20 goits d. 16 parts