The total annual demand of 20,000 units of product A is currently covered by two orders per year. Product A costs USD 50 per unit, each order incurs an expense of USD 1000, the inventory rate is 20% p.a. and safety stock is not taken into account.

1. how large are the total procurement costs today (two orders per year)? a) 2'000 USD b) 25'200 USD c) 52'000 USD d) 102'000 USD e) 1'000'200 USD

2. the standard deviation of the consumption of product A per semester is 1000 units today (determined over the last 5 years). How high must the safety stock be if the LIeferbereitschaft of product A is to be at least 97.5%? a) 500 units b) 975 units c) 1000 units d) 2000 units e) 3000 units

3. how many orders would the company have to place each year for total procurement costs to be minimual? a) 1 order b) 2 orders c) 6 orders d) 10 orders e) 12 orders