1. All else being the same, using the (Q, r) model (continuous review) instead of the OUL model (periodic review) will lead to the following benefit:

(choose the most appropriate answer)

Group of answer choices

Retail transaction becomes faster and smoother

Different SKUs can be identified accurately

Fewer units will be held in inventory.

Products can be tracked in the manufacturing and distribution system of a firm, as well as its channel partners

2. Foxie is in the business of selling packaged food products. The daily demand for Foxie is normally distributed with a mean of 100 and a standard deviation of 15 pallets per day.

Alter Templar, the supplier to Foxie, is very reliable. Alter's lead time is fixed at 5 days, with no variability.

Foxie wants to maintain a Service Level of 97.72%.

The appropriate safety stock for Foxie is _______ pallets.

Group of answer choices

53

67

15

40

3. Suppose Foxie's target Service Level should be optimally set at 95%.

If her cost of underage, Cu,is $0.55, how much is her cost of overage, Co?

Group of answer choices

$0.03

$0.55

$0.30

$0.05

4. Weekly demand for cell phones at a Best Buy store is normally distributed, with a mean of 300 and a standard deviation of 200. The supplier takes two weeks to supply Best Buy. Best Buy is targeting a service level of 95%. The store manager has decided to follow a periodic inventory review policy. She plans to review inventory every three weeks. How much safety inventory should the store carry?

Group of answer choices

200

736

420

635