1. Consider a periodic review system. If the inventory is reviewed every week, the lead time is one week, the monthly demand is 32,000 units, and safety stock is 100 units, what should the target inventory level be? (Assume 4 weeks per months)

A) 8,100 B) 100 C) 16,100 D) 32,000 E) 32,100

2. Haley’s Cleaners uses a continuous review system for their bottles of X-319 cleaning solution. Lead time from the supplier = 9 days. Average demand per day is 400 bottles with a daily standard deviation of 150 bottles. If Haley’s Cleaners holds 675 units in safety stock on average, what cycle service level do they provide?

A) 65.91% B) 93.32% C) 89.25% D) 80.65% E) 62.17%