$1.$ A small school bus depot operates $250$ days a year. Daily demand for

diesel fuel at the depot is normal with an average of $250$ litres and a

standard deviation of $14$ litres. Holding costs for the fuel is $ $0\mathrm{.}30$ per

litre per year, and ordering cost is $$10$ an order for more fuel. It takes

one day to receive a delivery of diesel.

A$)$ Calculate de EOQ

B$)$ Determine the ROP needed if the manager wants an annual

service level of $99\mathrm{.}9$ percent.

Z$=3\mathrm{.}1$

$2.$ A supermarket is open $360$ days per year. Daily use of cash register tape averages $10$ rolls, normally distributed, with a standard deviation of two rolls per day. The cost of ordering tapes is $$10$ per order, and holding cost is $40$ cents per roll a year. Lead time is three days.

a$.$ What is EOQ?

b$.$ What ROP will provide a service level of $96$ percent

Z$=1\mathrm{.}75$