QUESTION 1

Mark Gunther and Sony are trying to determine the safety stock (SS), Base Stock(S) and Order Quantity for its circuit cards using a Periodic Review Inventory Management System. It takes 25 days for Sony to receive its cards, i.e., a lead-time of 25 days, and Sony uses a review period (I) of 11 days. Mark estimates that the daily demand for Sony is 250 cards on average with a daily standard deviation of 70 units. After long conversations with the management team, Samsung agrees to target a service level of 91%. The Normal Distribution Table can be found in the Mambo packet.

1) What is the expected demand during the Review Period and Lead Time?

	a.	9,000
	b.	None of the answers listed
	c.	4,800
	d.	7,500
	e.	6,250

2 points

QUESTION 2

2) Determine the Safety Stock (SS) for Sony? (Round answer to the nearest whole number)

	a.	420
	b.	250
	c.	567
	d.	473
	e.	None of the answers listed

3 points

QUESTION 3

3) What would Sony's Base Stock (S) be?

	a.	7,973
	b.	9,567
	c.	4,800
	d.	None of the answer listed
	e.	6,250

3 points

QUESTION 4

1. 4) Suppose that Sony observes that at the end of the review period there are 160 circuit cards left in inventory . What would Sony's Order Quantity be?

	a.	7,813
	b.	9,407
	c.	8,133
	d.	None of the answers listed
	e.	9,727

2 points