1. A firm uses a fixed time period model to manage a type of bolts they keep in inventory. The average daily demand for the bolts is 41 with a standard deviation of 3.

An order is placed every 35 days and is received 3 days later. They use a 99 percent service level and currently have 90 on hand. How many should they order?

2. Tesla uses a perpetual inventory system to make inventory decisions about a replacement part for a Model X. Annual demand has been forecast to be 2,700 units and the business operates 300 days per year. The standard deviation of daily demand has been forecast to be 20 units. The order lead time is 9 days. Tesla pays $6 to hold a unit for a year and $300 to place an order. Tesla's target service level is 98%.

What is Tesla's total annual inventory cost?

3. Annual demand is 2,420, the price of one unit is $2.33, the order quantity is 95, the holding cost per unit per year is $0.30, and the order cost is $50. What is the total annual cost?