Please give me a clear explanation why this answer is correct.

3. You are rallying your race car at Indianapolis-500. This is a car race where drivers race 200 laps. Each lap consumes 3 gallons of gasoline. Every time you stop for refueling it costs you 13.5 seconds. Furthermore, each gallon of gasoline in your tank slows down each lap by 1 second. How often should you stop for refueling? (Assume unlimited fuel tank capacity and round to the closest integer.) A) Every 1 lap B) Every 3 laps C) Every 9 laps D) None of the above Answer: B.In this problem, the "inventory" is the gas (in gallons), the period" is measured in laps, and the "cost" is the time (in seconds). We have D = 3 gallons per lap, S = 13.5 seconds, H = 1 second per gallon per lap. Applying the EOQ formula yields an optimal refuel quantity of Q = = 9 gallons. Therefore, you should refuel every Q/D = 9/3 = 3 laps 2DS 2x3x13.5 4. Your daily demand is normally distributed with mean 50 and standard deviation 10. The lead time is equal to 5 days. You are asked to choose the ROP so that your service level is 95%. Moreover, your CEO insists on ordering 800 units whenever you place an order. Holding cost is equal to $1 per unit per year, setup cost is equal to $50. You may assume that 20.95=1.65 and that the year has 360 days. Your annual holding cost is equal to: (Round to the closest integer value.) A) $418. B) $437 C) $671 D) None of the above. Answer: B. We have D -50, S = 50, H = 1,0 - 10, L=5, Q = 800 (note that is not the EOQ). The average inventory is Q/2 - 800/2 = 400, and the safety stock is SS = zove = 1.65 x 10 x V5 = 37. Therefore, the annual holding cost is (Q/2+SS)"H = (400+37)*1 = 437