QUESTION 24 Deep Six Seafood, a restaurant that's open 360 days a year, specializes in fresh Maine lobsters at a cost of $12.50 each. Air freight charges have increased significantly and it now costs Deep Six $50 to place an order. Because the lobsters are shipped live in a saltwater tub, the ordering cost is not affected by order sizes. The cost to keep a lobster alive until needed runs about $0.02 per day. The demand for lobsters during the 1-day lead time is as follows: Lead-time Demand Probability 0 10 1 10 2 30 3 25 4 .20 5 05 Deep Six would like to reconsider its order size. What would you recommend as an EOQ? O a. 100 O b. 112 O c. 120 O d. 388 O e. None of the above. QUESTION 25 Using the information in the previous problem, if Deep Six insists on maintaining a safety stock of 2 lobsters, at what reorder point should Deep Six place another order? O a. 3 O b. 4 O c. 5 O d. 35 O e. None of the above