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question 1 A furniture manufacturer uses 169000 nails (size 7d) annually. The nails are used at a constant rate during the year. The manufacturing facility operates for 320 days per year. Lead time is 7 days and there is no variability in neither lead time nor demand. question Calculate the demand per day of operation. Points 6 nails nswer Luestion Find the reorder point. Points 6 nswer nails question 2 You are hired by a company that sells plastic to various business customers. You know from historical data that the daily demand for plastic is normally distributed with an average of 490 tons and a standard deviation o Lead time for ordering plastic is constant at 10 days and the maximum acceptable stockout risk is 5.9%. question What value of z is appropriate for this situation? Points 6 nswer Cuestion How much safety stock should be held to achieve the required service level? Points 6 nswer tons Cuestion What is the Reorder Point (ROP) that achieves the required service level? Points 6 nswer tons question 3 You are the owner of a small gas station. You know your daily demand for gasoline is constant at 4200 gallons per day. The lead time for ordering gasoline is normally distributed with an average of 19 days and a standard deviation of 2.5 day You have decided to provide a service level of 93%. question What value of z is appropriate for this situation? Points 3 nswer uestion How much safety stock should be held to achieve the required service level? Points 3 nswer gallons question What is the Reorder Point (ROP) that achieves the required service level? Points 6 nswer gallons question Calculate the stockout risk. Points 6 nswer % Luestion How many days of supply are on hand at ROP? Points 6 nswer days (round to 2 decimal places)

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