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20. A researcher is given three options for leasing time on a supercomputer: 1/ Unlimited computer time for $6,000 per month; 2/ Pay $2,000 per month plus $40/hour of use; 3/ Pay $80/hour. The researcher has developed this probability distribution concerning his monthly use of computer time:# hours of use per month 30 90 Probabiling 100 150 25 200 30 the EV criterion.) Which option should be selected video the seaweed vilive Betterway, so as to summers membilly coms? a. Option 1 (Construct a payoff table reflecting the possible costs for each combluntion of action and even Then aging b. Option 2 Option 3 d. it does not matter which option is classen 21, When the BOO formula is used, which costs are minimized? I Order costs and carrying costs b. Order costs and stockout costs c. Order, carrying and stockout comes Carrying cous and stockout coms 22. What assumption is made in developing and applying the BOO model? Demand is variable b. Demand is always maximized C. Demand is known and conman d, Demand is not relevant 23. The Queens Box Company experiences a constant demand of 48,000 boxes per year to operate ids business. The unit cost is .30 (cents). Placing an order costs $20 and annual carrying costs are $2/unit. The company operates 250 days per year and maintains a safety stock of $76 boxes. The lead time for an order of bones is 4 business days. The BOO (rounded to the nearest whole number) is: a. 576 units C. 3098 units b. 490 units d. 980 units 24. Refer to the preceding question. The total order and carrying costs associated with the BOQ level is: a. $980 C. $1960 b. $490 d. None of these 25. Refer to question 23. The reorder point, R, is: 1,344 units C. 576 units b. 768 units d. Cannot be determined from this information