The re-order level of material M is 3,200 kg and the order quantity is 2,800 kg. Lead times and usage are as follows: What is the minimum stock control level of material M?

Lead time: Minimum 1 Week

Average 1 weeks

Maximum 2 Weeks

Usage: Minimum 1,200 kg per week

Average 1,400 kg per week

Maximum 1,600 kg per week

a.

700 kg

b.

2,000 kg

c.

Nil

d.

1,100 kg

Sunset Corporation's forecast sales for June were OMR 22,000. Actual sales for June totaled OMR 22,500. Using exponential smoothing constant of () of 0.4, Sunrise's projected sales for July would be:

a.

22,200 OMR

b.

22,150 OMR

c.

22,850 OMR

d.

21,650 OMR

Sales of double door refrigerators have grown steadily during the past 5 years. A dealer predicted that the demand for February would be 128 refrigerators. Actual demand in February was 138 refrigerators. If the smoothing constant () is 0.3m, the demand forecast for March, using exponential smoothing model will be:

a.

158 refrigerators

b.

148 refrigerators

c.

155 refrigerators

d.

131 refrigerators