Use the following information for the next 4 questions.

Forecast of demand	36000	units/week
Forecast error, standard deviation	800	units/week
Lead time	2.5	weeks
Carrying Costs	20%
Purchase price, delivered	$65	per unit
Replenishment order cost	$2,000	per order
Stockout cost	$10
Probability of being in stock during the review interval plus lead time	95.0%
Economic order quantity	24,000	units/week
Time between orders	0.67	weeks

1. If you are using a Periodic Review model, what is the average number of units out of stock during a (T+LT) time period?

Group of answer choices

a. 29.4 units

b. 17.1 units

c. 62.6 units

d. 51.9 units

e. 0.4 units

f. 71.4 units

g. 6.3 units

2. If you are using a Periodic Review model, what is the annual service level?

Group of answer choices

a. 99.88%

b. 99.75%

c. 99.5%

d. 99%

e. 99.95%

f. 95%

3. If you are using a Periodic Review model, what is the annual stockout cost?

Group of answer choices

a. $18,770

b. $12,502

c. $8,001

d. $10,513

e. $22,931

f. $14,892

g. $16,038

4. If you are using a Periodic Review model, what is the annual holding cost?

Group of answer choices

a. $192,806

b. $186,553

c. $179,482

d. $198,639

e. $151,227

f. $165,266

g. $171,805