solution

1. (Average Inventory Part B v1)* A warehouse orders 500 boxes of papers at a time to a manufacturer. The unit time is one week and the manufacturer takes 4 weeks to deliver.
   The warehouse manager finds that the weekly demand is random, and normally distributed with a standard deviation of 100. She targets a service level of 97.73%. (Hint: Demand is random in Part B.)
   The warehouse holds an average inventory of ___.
   (*Show calculations.)

   	A.	675
   	B.	650
   	C.	625
   	D.	600
   	E.	700

1 points

QUESTION 22

1. (Weeks of Supply #1)* Given weeks of supply = 3, annual demand = 10400, and order quantity = 500, safety inventory is ___.
   (*Show calculations.)

   	A.	350
   	B.	300
   	C.	550
   	D.	200
   	E.	250

1 points

QUESTION 23

1. (Inventory Turnover v1)* As a supply chain holds LESS inventory, inventory turnover ___ and days of supply ___.
   (*Use the formulas to discuss briefly why)

   	A.	decreases, increases
   	B.	decreases, decreases
   	C.	increases, increases
   	D.	increases, decreases

1 points

QUESTION 24

1. (Impact of Setup Cost 01)*

   — If a current setup cost (e.g., transportation cost per order) of 1000 decreases to 333, the current EOQ of 100 changes to the new EOQ of ___.

   — If a current setup cost (e.g., transportation cost per order) of 1000 increases to 3000, the current EOQ of 100 changes to the new EOQ of ___.

   (*Show calculations.)

   	A.	33, 300
   	B.	58, 173
   	C.	173, 58
   	D.	300, 33