Answer Happy

RoyalTech's South Jersey warehouse faces a daily demand that is
normally distributed, with mean 1,000 and standard deviation 100
pallets.
RoyalTech's supplier has a lead-time that is normally
distributed, with mean 5 days and standard deviation 1 day.
RoyalTech reviews its inventory periodically, that is, every 7
days. (Hint: think about the inventory model appropriate here)
RoyalTech's warehouse runs 365 days a year, and the cost of
carrying inventory is 18.25% per year.
The supplier charges RoyalTech $2,000 per pallet, and $5,000 per
delivery.
RoyalTech plans to maintain 98% SL.
NORMSINV(0.98) = 2.054. L(2.054) = 0.0073.
Answer the following questions.
1. How much safety stock should RoyalTech carry?
[ Select ]
["1234", "2174", "2256", "3979"] pallets.
2. What is RoyalTech's average inventory?
[ Select ]
["3500", "5000", "5674", "6196"] pallets.
3. What is the total relevant cost incurred by RoyalTech per
day? $ [ Select ]
["6388", "6572", "6923",
"7170"] .
4. What is the Fill Rate that RoyalTech is able to achieve for
this service level? [ Select
] ["98%", "98.9%", "99.9%",
"100%"]