1. h' is calculated by:

a. Multiplying K and c

b. Dividing i and c

c. Dividing D and K

d. Multiplying i and c

2. if demand is normally distributed with mean demand = 20 units/week, standard deviation of demand = 4 units/week, supply lead time is 3 weeks, and the desired CSL is 99%, what is your reorder point?

a. 36

b. 48

c. 76

d. 97

3. What is your standard deviation of demand during lead time if your average lead times = 2 weeks, standard deviation of demand = 6, average demand is 24, and standard deviation of lead time is 1 week.

a. 45.33

b. 33.94

c. 37.89

d. 29.45