Given the information below, how much safety stock should be held?

Average Customer Demand: 100 units

Standard Deviation of Customer Demand: 10 units

Supplier Lead Time: 9 days

Desired Service Level (order fill rate): 98.5%

Z score for 98.5%: 2.17

Group of answer choices

63

195

50

100

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Question 20.2 pts

Given the following information, what is the optimal amount of pipeline (in-transit) inventory?

Average Customer Demand: 100 units

Standard Deviation of Customer Demand: 10 units

Supplier Lead Time: 9 days

Desired Service Level (order fill rate): 98.5%

Z Score for 98.5%: 2.17

Group of answer choices

900 units

100 units

450 units

50 units

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Question 30.2 pts

Given the following information, identify the data you need to calculate the Economic Order Quantity and perform the calculation:

Average weekly demand: 50 units

Order cost: $20/order

Carrying cost: 25%

Unit product cost: $200

Desired service level: 98.5%

Z Score for desired service level: 2.17

Group of answer choices

46 units

32 units

645 units

2080 units

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Question 40.2 pts

Given the following information, calculate the lead time for Supplier A:

	Supplier A
# of days to review order and schedule order	2
# of days to manufacture order	5
# days to pick and pack order	1
Ocean transit time	12
# days to clear Customs	3
# of days of inland transport from port to buyer's facility	1

Group of answer choices

24 days

22 days

20 days

12 days

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Question 50.2 pts

What is the difference between cycle stock and safety stock?

Group of answer choices

Cycle stock is planned stock to meet forecasts, while safety stock is inventory used to mitigate the difference between forecast and actual orders.

Cycle stock is held to deal with emergency situations, whereas safety stock is held to buffer variations in demand.

Cycle stock is the total amount of stock held by a company and includes safety stock

There is no significant difference between the two. Both are used to prevent a stock out.

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Question 60.2 pts

Given the following data for a product, calculate the total cost of ownership for each supplier.

Annual Cost	Supplier A (India)	Supplier B (Argentina)
Product cost	$425,000	$350,000
Inland Freight	$20,000	$25,000
Ocean Freight	$30,000	$75,000
Customs Duties	$10,000	$10,000
Inventory Carrying Cost	$20,000	$25,000
Quality Defects	$15,000	$25,000

Group of answer choices

Supplier A: $520,000. Supplier B: $510,000

Supplier A: $475,000; Supplier B: $450,000

Supplier A: $485,000; Supplier B: $$460,000

Supplier A: $500,000; Supplier B: $485,000

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Question 70.2 pts

Given the following data, calculate the forecast for March using the exponential smoothing method. [alpha: 0.60]

Month	Actual Demand (units)	Forecast Demand
January	5,000	5,500
February	5,500	5,000
March

Group of answer choices

5,300 units

5,250

5,500

5,000

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Question 80.2 pts

Given the following data, by how much will safety stock increase (decrease) if Supplier A is replaced by Supplier B?

Supplier A Lead Time	25 days
Supplier B Lead Time	16 days
Average Daily Customer Demand	100 units per day
Standard Deviation of Daily Customer Demand	15 units
Mean Absolute Deviation (MAD)	25
Desired Service Level	97%
Z Score for Desired Service Level	1.88

Group of answer choices

It will decrease by 28 units

It will increase by 9 units

It will decrease by 15 units

It will increase by 35 units

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Question 90.2 pts

If a company regularly holds 50 units of safety stock of a product and places orders in quantities of 500 units for the same product, what would be the average warehouse inventory for that product?

Group of answer choices

300 units

250 units

550 units

500 units

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Question 100.2 pts

A company currently uses the EOQ method to order a product. Under this method, the product is ordered in quantities of 300 units per month. If the company changes to a strategy of ordering in quantities of 70 units per week, by how much will the average cycle stock decrease/increase?

Group of answer choices

Average cycle stock will decrease by 115 units

Average cycle stock will decrease by 230 units

Average cycle stock will increase by 70 units

Average cycle stock will increase by 50 units