1. The College Bookstore sells a unique calculator to college students. The demand for this calculator has a normal distribution with an average daily demand of 20 units and a standard deviation of 4 units per day. The lead time for this calculator is 9 days. Compute the statistical reorder point that results in a 95 percent in-stock probability. Choose the closest answer.
A. 80 units
B. 180 units
C. 200 units
D. 20 units
E. 420 units
2. Supply chain management will involve cultural change among most or all of the participants.
True or False?
3. Which of the following is true under the Periodic Review System?
A. it is more expensive to administer compared to the Continuous Review System
B. a higher level of safety stock is needed to buffer against uncertainty in demand over a longer planning horizon, compared to the EOQ system
C. there are no discrepancies between physical inventory and the stock record
D. the only uncertainty is the magnitude of demand during the delivery lead time
E. a lower level of safety stock is needed to buffer against uncertainty in demand over a longer planning horizon, compared to the EOQ system
4. A hardware vendor manufactures $300 million worth of PCs per year. On average, the company has $45 million in accounts receivable, how much time elapses between invoicing and payment in terms of days if each year is 360 days?