Section $2$

$($Q$.$ R$)$: A supplier sells a popular auto part to car dealers. The weekly demand is approximately normal with the historical distribution of $DN(63,25)$ 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 $($managerial and clerical costs$).$ Assume a four$-$week lead time.

What is the distribution of the demand during lead time?

a$.N(126,25)$

b$.N(126,625)$

c$.N(252,100)$

d$.N(252,10)$

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?

$3.50$ percent

b$.25$ percent

c$.16$ percent

d$.84$ percent

What is the holding cost, $h?$

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

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

c $57\mathrm{.}8$

d$.$ $$26\mathrm{.}4$