Question: 1) Consider a continuous review inventory system with a lead time of two weeks. If the standard deviation of demand during lead time is 212.132

1)

Consider a continuous review inventory system with a lead time of two weeks. If the standard deviation of demand during lead time is 212.132 and the desired order-cycle service level is 91%, what should the safety stock equal? Round your answer to the nearest whole number.

Group of answer choices

229

244

none of these

284

272

2)

The fixed and variable costs for the three potential manufacturing plant sites for basket weaver are shown below.

Site

Fixed Cost Per Year

Variable Cost Per Unit

A

$2,500,000

$15

B

$2,000,000

$20

C

$1,5000,000

$25

D

$3,000,000

$16

For a production of 75,000 units, which site is the best based on total cost?

Group of answer choices

site B

site D

site A and site B

site C

site A

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