Please answer #16 #17 #18

1. T-mart logistics manager needs to order repetitively for one of its staple items. The product demand rate is uncertain in nature, so he considers applying the EOQ-based Reorder Point Control for a Single Item under Uncertainties. [Hint: Please see the additional 1-page slide posted for the multi-echelon inventory example on Blackboard.] The MONTLY demand for the product likely follows a normal distribution, with a mean of 100 units and standard deviation of 20 units. The item value is C=$10/unit, while the inventory carrying charge is I = 20%/year based on the value of the item. Ordering cost is S=$40/order, with a fixed lead time LT=0.25 month. Based on this method, the appropriate reorder quantity (Q) should be Ca. 100 units b. 120 units c. 138 units d. 200 units ce. 219 units 3 points QUESTION 16 1. In the T-mart repetitive ordering problem with Reorder Point Control method, the amount of safety stock required to provide 90% of in-stock probability during reordering LT would be Ca. 10.4 units b. 12.8 units C c. 20.0 units d. 26.8 units e. 46.6 units 3 points QUESTION 17 1. In the T-mart repetitive ordering problem with Reorder Point Control method, the Reorder Point (ROP) required to provide 90% of in-stock probability during reordering LT would be Ca. 20.0 units b. 30.6 units Cc. 37.8 units d. 40.0 units C e. 46.6 units 3 points QUESTION 18 1. In the T-mart repetitive ordering problem with Reorder Point Control method, with the optimal reordering quantity Q and reorder point ROP, the average inventory level (AIL) would be about a. 122 units C b. 133 units c. 140 units d. 144 units ce. 155 units