Question 11 (2 points) You are the operations manager of a firm that uses the continuous review inventory control system. Suppose the firm operates 252 days a year and has the following characteristics for its primary item: Demand =25,000 units / year Ordering cost =$37/ order Holding cost =$4/ unit / year Lead time =4 days Standard deviation in daily demand =6 units What is the total setup cost per year (to the nearest whole number)? Your Answer: Your Answer Question 12 (2 points) You are the operations manager of a firm that uses the continuous review inventory control system. Suppose the firm operates 252 days a year and has the following characteristics for its primary item: Demand =25,000 units/year Ordering cost =$37/ order Holding cost =$2/ unit / year Lead time =4 days Standard deviation in daily demand =9 units What is the total holding cost per year, including annual holding cost for safety stock (to the nearest whole number)? (Service level=95\%) Your Answer: Your Answer.

1. Question 11 (2 points) You are the operations manager of a firm that uses the continuous review
inventory control system. Suppose the firm operates 252 days a year and has the following
characteristics for its primary item: Demand =25,000 units / year Ordering cost =$37/ order
Holding cost =$4/ unit / year Lead time =4 days Standard deviation in daily demand =6 units
What is the total setup cost per year (to the nearest whole number)? Your Answer: Your Answer
Question 12 (2 points) You are the operations manager of a firm that uses the continuous review
inventory control system. Suppose the firm operates 252 days a year and has the following
characteristics for its primary item: Demand =25,000 units/year Ordering cost =$37/ order
Holding cost =$2/ unit / year Lead time =4 days Standard deviation in daily demand =9 units
What is the total holding cost per year, including annual holding cost for safety stock (to the
nearest whole number)? (Service level=95%) Your Answer: Your Answer