a. If demand is normally distributed with mean demand = 25 units/day, your lead time is 5 days exactly, and your standard deviation of demand = 3 units/day, what is your reorder point? Assume your desired CSL is 95%

• a. 131
• b. 140
• c. 115
• d. 136

b. Which of the following heuristics or rules of thumb are used to make inventory decisions?

• a. Fixed order quantity
• b. Lot for lot
• c. Period order quantity
• d. Cash-to-cash cycle
• e. All of the above
• f. None of the above
• g. Only a, b, and c

c.Days of inventory supply is also known as days on hand.

True or False

d. Which of the following ways should you classify SKUs to identify which SKUs are the most important to your company?

• a. Based on relative value
• b. Based on total number of units used each year
• c. Based on strategic issues
• d. All of the above
• e. Only a and c

e. 'D' (units) represents which of the following?

• a. Annual Demand
• b. Unit Value
• c. Inventory Holding Cost
• d. Order Cost
• e. Order Quantity

f. How can you mitigate uncertainty on the demand side?

• a. Make more frequent store deliveries
• b. Work more closely with your marketing colleagues
• c. Participate on your customer's new product development team
• d. Develop the right suppliers
• e. All of the above
• f. Only b and c