QUESTION $7$

Alice works as a procurement assistant for a restaurant. She has access to a rice supplier who allows her to place orders at any time. On average, the restaurant consumes

$50$ pounds of rice per day, with a standard deviation of $8$ pounds. The supplier takes an average of $4$ days to deliver the rice, with a standard deviation of $1\mathrm{.}2$ days. Alice

decides to order $80$ pounds of rice each time. What is the safety stock that will enable Alice to maintain a $96\%$ service level?

$73$

$88$

$97$

$109$

QUESTION $8$

Kyle is playing an online game. He can only purchase the equipment in a weekly market that is open every Sunday morning. When Kyle places an order, he can receive the

gear on the next day, which is Monday morning. On average, the equipment is consumed at a rate of $70$ units per day with a standard deviation of $12.$ Kyle wants to ensure

that there is only a $2\%$ probability that he will run out of the equipment. What would be the order$-$up$-$to level when he can place an order?

$490$

$560$

$630$

$700$

QUESTION $9$

A battery distributor manages their inventory of AAA batteries using a periodic review system. The review period is set to $4$ days, and the order$-$up$-$to level is $15,000$ units.

Today is the day to place an order; currently, there is no on$-$hand inventory. Additionally, there are $8,000$ units of inventory on order and $1,000$ units in backorders. What

should be the order quantity for this period?

$7,000$

$8,000$

$9,000$

$14,000$

QUESTION $10$

A coffee shop manages its inventory of cup sleeves using a continuous review system with a reorder point of $20$ packs and an order quantity of $60$ packs. The lead time for

replenishing the inventory is fixed at $1$ day. At the end of day $0,$ the coffee shop has $40$ packs of cup sleeves on hand, and there is no on$-$order inventory or backorder. The

coffee shop's demand for the next five days is as follows: $23,11,16,17,$ and $19$ packs, respectively. What will be the coffee shop's inventory position at the end of day $5?$

$14$

$33$

$53$

$74$