1. Shipments of Product X from a plant to a wholesaler are made in lots of 600. The wholesaler's average demand for X is 100 units per week. The lead time from the plant to the wholesaler is 4 weeks. The wholesaler pays for the shipments when they leave the plant.
What is the total of the wholesaler's current cycle plus pipeline inventories?
A) 300 units
B) 100 units
C) 700 units
D) 400 units
Please explain and show work
2. The defect rate for a product has historically been about 5.0%. What is the upper control chart limit if you wish to use a sample size of 50 and 3-sigma limits?
A) 0.082
B) 0.112
C) 0.142
D) 0.172
3. Historically, the average time to service a customer complaint has been 3 days and the standard deviation has been 0.50 day. Management would like to specify the control limits for an chart with a sample size of 10- and 3- sigma limits. The LCL for the chart would be:
A) less than 2.40.
B) greater than 2.40 but less than or equal to 2.45.
C) greater than 2.45 but less than or equal to 2.50.
D) greater than 2.50.