Question $1$

$3$ pts

Using the fixed$-$order$-$quantity model, which of the following is the total ordering cost of inventory given an annual demand of $25,000$ units, a cost per order of $$80,$ and a holding cost per unit per year of $$16?$

$3229$

$1200$

$4000$

$2400$

$4267$

$$

$$

$$

Question $2$

$2pts$

BB bookstore sells a book that has fairly steady demand. The bookstore must buy $1,800$ books at a time from the supplier. The lead time is negligible because the supplier is just a mile away and BB bookstore can pick up another $1,800$ books when the bookstore runs out. How many of that book do you expect BB bookstore to have in inventory, on average?

$900$

$1810$

$1800$

$1800+($Zscore $x$ standard deviation$)$

$3600$

Question $3$

$2$ pts

Daily demand for fresh cauliflower in the ZZ$-$Warehouse store follows a normal distribution with a mean of $100$ cartons and standard deviation of $20$ cartons. The ZZ$-$Warehouse buys at a cost of $$50\mathrm{.}00$ per carton and sells it for $$70\mathrm{.}00$ per carton. Unsold cartons are sold for $$20\mathrm{.}00$ per carton. What is the optimal order quantity, using the single$-$period model?

$80$

$105$

$110$

$95$

$100$

Question $4$

$3$ pts

A company wants to determine its reorder point $($R$).$ Demand is variable and the company wants to build a safety stock into $R.$ If the average daily demand is $15,$ the lead time is $5$ days, the desired $z$ value is $1\mathrm{.}96,$ and the standard deviation of usage during lead time is $3,$ which of the following is the desired value of $R?$

About $81$

About $61$

About $89$

About $66$

About $76$

Question $5$

$3$ pts

A Company currently has $230$ units of a product on$-$hand that it orders every three weeks when the salesperson visits the premises. Average demand for the product is $20$ units per day with a standard deviation of $5$ units. Lead time for the product to arrive is seven days. Management has a goal of $95$ percent probability of not stocking out for this product. The salesperson is due to come in late this afternoon when $210$ units are left in stock. How many units should be ordered?

$394$

$458$

$180$

$278$

$560$

Question $6$

$2$ pts

Consider the following information for an item being managed using a P$-$Model: Weekly demand $=60$ units, Review cycle $=3$ weeks, safety stock $=20$ units. Considering that a year has $52$ weeks, the average inventory is:

$115$

$100$

$120$

$110$

$112$

Question $7$

$3pts$

Daily demand for a product is $130$ units, with a standard deviation of $30$ units. The reviewer period is $14$ days and the lead time is $7$ days. At the time of the review, $140$ units are in stock. If only a $2$ percent of stocking out is acceptable, how many units should be ordered.

$2730$

$2872$

$2710$

$2648$

$2823$

Question $8$

$2$ pts

In a single$-$period Newsvendor model, if the demand is normally distributed with a mean of $80$ and a standard deviation of $10,$ and the optimal service level is $90\%,$ what is the optimal order quantity?

$103$

$93$

$87$

$90$

$100$