8) Demand for a product is approximately normal, averaging 20 units per day with a standard deviation of 3 unit per day. Lead time for this product is approximately normal, averaging 25 days with a standard deviation of 1day. What reorder point provides a service level of 95 percent? (Z=1.64)

A) 500 B) 525 C) 541 D) 599 E) 601

9) A manufacturer took the following actions to reduce inventory. Which of these is generally not accepted as a JIT action?

A) It used a pull system to move inventory.

B) It produced in ever smaller lots.

C) It required deliveries directly to the point of use.

D) It worked to reduce the company's in-transit inventory.

E) It picked the supplier that offered the lowest price based on quantity discounts.

10) In the disaster risk model, as the probability of a super-event (S) increases, the advantage of utilizing multiple suppliers decreases.

True or False