QUESTION 10 A bubble tea store uses a continuous review system with an order quantity of 50 packs and a reorder point of 30 packs to manage its straw inventory. The lead time is fixed at 1 day. At the end of day 0, the on-hand inventory is 50 packs. The store's demand for the next five days is 11, 17, 19, 24, and 21, respectively. What will be the inventory position at the end of day 5?

66

58

89

79

QUESTION 11 Adam is selling homemade chocolate based on a 50% markup. That is, the profit of each unit sold is 50% of the unit production cost. His friend, Kyle, is willing to purchase all the unsold units at the end of the day if Adam offers a discount of 60% off the selling price. What is the optimal service level (i.e., critical ratio) of selling the chocolate? (Note: Heres an example of the discounted price. Consider a product priced at $100. The price with a discount of 20% off the selling price is $80.)

66.67%

83.33%

71.11%

55.56%

QUESTION 12 A coffee shop is using a periodic review system with a review period of 3 days and an order-up-to level of 1200 units to manage the inventory of disposable cups. Today is the day to place an order, and the current on-hand inventory is 150 units, the on-order inventory is 500 units, and there are no backorders. What is the order quantity for this period?

550

950

750

1050

QUESTION 13 Which of the following statements about a stable service system is NOT correct? The processing time must be lower than the interarrival time. The flow rate must be lower than the process capacity. If there is no variation in the interarrival and service time, the average customer waiting time is 0. The average processing time keeps the same when the number of servers increases

QUESTION 14 Aaron Judge is taking batting practice. On average, he hits 8 balls per minute, with a standard deviation of 1 ball. The time it takes to deliver and refill the baseballs is exactly 3 minutes, and he can place a request to refill balls every 10 minutes. If he wants to ensure that the probability of running out of balls is only 2%, what should be the order-up-to level for the balls?

93

79

111

126

QUESTION 15 Johnny bought a sculpture for $100,000 and plans to keep it for a year. If he doesn't buy it, he can invest the money in a certificate deposit account, earning an annual percentage yield of 6%. He also has to rent a space to store the sculpture, and the monthly rent is $200. What is the annual inventory holding cost percentage for the sculpture? 7.2%

8.4%

5.4%

6%

QUESTION 16 On average, a call center receives calls from customers every 7 minutes, and it takes 15 minutes to finish a call. The system assumes Poisson arrivals and exponential service time. The manager's goal is to limit the average customer waiting time to 2 minutes. What is the minimum number of customer services the call center needs to have to achieve this goal? (Hint: compare the waiting time of all four options.) *Please consider at least two decimals for each of your calculations.

4

7

6

5

QUESTION 17 The registration office has only one staff serving customers. On average, the staff serves a customer for 3 minutes, and the processing time has a standard deviation of 1.6 minutes. The arrival rate is 15 customers per hour, and the coefficient of variation of the arrival process is 0.4. What is the average waiting time for a customer?

2.67

3.2

2.25

2

QUESTION 18 Sara is the manager of a pizza restaurant, and she can order flour from a supplier anytime. The average daily flour consumption of the restaurant is 35 pounds, with a standard deviation of 7 pounds. The average delivery time from the supplier is 3 days, with a standard deviation of 0.5 days. She decides to order 72 pounds at a time. What is the reorder point that enables her to maintain a 95% service level?

140

133

117

124

QUESTION 19 Andy sells 500 bottles of vitamin C per week at $25 per bottle. He orders the vitamin bottles from a supplier who charges $18 per bottle and $35 per delivery. Andy's annual holding cost percentage is 30%, and he operates 50 weeks a year. If he orders 240 bottles at a time, what is his total ordering and holding cost per year?

$3,623

$4,294

$4,906

$3,074