1) Demand for the product is normally distributed with average daily demand equal to 1500 units and daily standard deviation of demand equal to 75 units. Lead time for item is three days. To maintain the service level of 95% company should hold ______ units as safety sock for this item?
2) Annual demand for the product is 40,000 units. Product is used at the constant rate over 365 days company is open every year. Annual holding cost for product is evaluated to be $2.50 per unit and cost of placing every order is $125.00. If company orders according to economic order quantity (EOQ) formula then its optimal order size for the product would?
3) The product's usage is normally distributed with the weekly average demand of 2,000 units and weekly standard deviation of 125. Lead time for product is 4 weeks. If company would like to have the service level of 90% for the product then reorder point must be approximately?
4) Demand for the electronic component is normally distributed with the average daily demand of 500 units and the standard deviation of 50. Lead time for component is nine days. If the service level of 95% is desired then company's reorder point for the component would be approximately?