Question: Weekly demand at a beer store is 200 cans with a standard deviation of 50. The replenishment lead time is 1 week from the factory.

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Weekly demand at a beer store is 200 cans with a standard deviation of 50. The replenishment lead time is 1 week from the factory. The store manager orders 1000 cans when the inventory drops to 300. Each can costs $0.50. The holding cost the store incurs is 40%. Demand during stockout is backlogged. Use this information to answer this and the next 5 questions What is the mean and standard deviation of demand during lead time? 60;087 O 20; 050 87; 600 None of the ioptions 50; 200 What is the customer service level? 0 1 0.89 0.49 0.98 O None of the options Suppose the store decides to cut their lot size in half. What is the new customer service level? 0.89 None of the options 0.98 0.49 What is the cost of understocking if the desired service level is 97.9%? 0.04 O 0.423 None of the options 0.915 Suppose the store decides to cut their lot size in half. What is the new cost of understocking if the desired service level is 97.9%? O 0.04 0.457 None of the options O 0.915 O1 Suppose the store loses all demand during a stockout and each lost sale results in a loss of $2 profit. What is the customer service level? Less than 92% Between 92% and 94% Greater than 98% Between 94% and 96% Between 96% and 98%

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