7) Xu's Industrial Generators makes generators at an average cost of $2,000. Last year, Xu sold 5,000 units of the generators and had an annual turnover rate of four times. Xu has estimated her inventory carrying cost to be 25 percent. What was Xu's annual inventory carrying cost? A) $625,000 B) $250,000 C) $312,500 D) $125,000 8) Which of the following statements helps us accurately complete the following sentence: Independent demand inventory models can help us determine A) when to buy and how much to buy. B) safety stock levels. C) stock levels for regular and one-time buys. D) A and C only E) A,B, and C 9) Higgins Manufacturing Inc. purchases a component from a Chilean supplier. The demand for that component is exactly 70 units each day. The company is open for business 250 days each year. When the company reorders the product, the lead time from the supplier is exactly 10 days. The product costs $14.00. The company determined that its inventory carrying cost is 20 percent. The company's order cost is $30.00. If the company decides to order 1,750 units each time it places an order, what will be the total annual cost of this policy? (Do not include the product cost in your answer.) A) $1,500 B) $2,400 C) $2,750 D) $3,400 E) $5,000 10) A large seller of high-end mountain bikes has three retail outlets throughout the San Francisco Bay Area. Weekly demand at each outlet is normally distributed, with means of 250,320 , and 410 bikes. The standard deviations are 50,30 , and 45 , respectively. The lead-time for replenishment from the manufacturer is 2 weeks. Each outlet covers a separate geographic area (assume there is no demand correlation between the areas). These high-performance bikes cost the retailer $2,000 dollars each. Inventory holding costs are estimated at 20% of the item value. a. Determine the required level of safety stock at each location for an 85%,90%, 95%, and 99% service levels. What is the total cost of SS at each location? What is the total cost of the safety inventory for the entire chain (for each scenario)? How would you describe the relationship between service level and total safety stock cost