$7.$ A restaurant uses the continuous$-$review inventory model to replenish its

inventory of potatoes. The demand during the lead time is Normally

distributed with an average of $50$ lbs and a standard deviation of $10.$

If safety stock of $20$ lbs is used, what is the reorder point?

A$)20$ lbs

B$)50$ lbs

C$)70$ lbs

D$)$ None of the above

Answer: C$)70$ lbs$.$

$18.$ A restaurant uses the continuous$-$review inventory model to replenish its

inventory of potatoes. The demand during the lead time is Normally

distributed with an average of $50$ lbs and a standard deviation of $10.$

If no safety stock is used, what is the probability of stockout?

A$)0\%$

B$)50\%$