Question $1$

Mrs$.$ ?Pilfer, the owner of an independent book store, needs to decide how many copies to order for a new book, Diary of a Wimpy Kid.

Retail price is $$20$ ?and the wholesale price is $$12.$

Leftover copies are returned to the publisher to get full refund. But she incurs a $$4$ ?S&H fee per copy.

Demand follows a normal distribution with mean $200$ ?and standard deviation $80.$

How many copies should she order?

Question $2$

Due to the increases in the raw material costs, the critical ratio of one product decreases. How would the optimal order quantity change $($using newsvendor model$)?$

A$.$ ?Order Quantity Q will decrease

B$.$ ?Order Quantity Q will Increase

C$.$ ?Order Quantity Q remains the Same

D$.$ ?Not enough Information

Question $3$

Suppose you are the purchasing manager at Target. SONY delivers TV in batches according to the orders you place

The stock is depleted as customers come to purchase. The demand is $2500/$year$.$ ?Ordering costs of $$100/$order$,$ ?and holding cost of $$50/$unit per year. The Lead time is $2$ ?days.

Using the EOQ model $($or fixed quantity model$),$ ?what is the optimal order quantity?

Question $4$

Using information in Question $3$ ?or $1($The question has a typo, which is why I do not know which of the $2$ ?questions this problem is referencing$).$ ?What is the reorder point?