Section $2($Q R$)$:

$1.$ A supplier sells a popular auto part to car dealers. The weekly demand is approximately normal with the historical distribution of D~N$(63,25)$ units over a $45-$week operating year. The supplier pays $$26$ for each unit and sells each for $$41.$ In addition, they estimate that the annual holding cost is $30$ percent of the unit's cost $($to the supplier$).$ It costs approximately$$25$ to place an order $($manerial and clerical costs$).$ Asume a four$-$week lead time.What is the distribution of demand during lead time?

a$.$ N$(126,25)$ b$.$ N$(126,625)$c$.$ N$(252,100)$d$.$ N$(252,102.$ Consider the distribution of the demand during lead time from question seven. What is the chance of the demand level during lead time exceeding $262$ units? a$.50$ percent$|$ b$.25$ percent c$.16$ percent d$.84$ percent

$3.$ What is the holding cost, h$?$

a$.$ $$18\mathrm{.}9$

b$.$ $$12\mathrm{.}3$

c$.$ $$7\mathrm{.}8$

d$.26\mathrm{.}4$

$4.$ What is the average annual demand?

a$.2835$ b$.126$ c$.252$ d$.3150$

$5.$ What is the economic $($ optimal$)$ order quantity, EOQ?

a$.28$ parts b$.142$ parts c$.41$ parts d$.135$ parts

$6.$ What is the annual inventory cost at the EOQ?

a$.$ $$221\mathrm{.}7$ b$.$ $$334\mathrm{.}2$ c$.$ $$2921\mathrm{.}7$ d$.$ $$1051\mathrm{.}50$

$7.$what is the order frequency at the EOQ?

$8.$ Suppose the order costs are expected to increase and the supplier now wishes to order $270$ units. What is the unit ratio?