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1. If average demand is 20 units per day with a standard deviation of 4 units, and if average lead time is 8 days with a standard deviation of 2 days, what should the reorder point be to ensure a 97.72% inventory availability or a 2.28% probability of stockout (use a Z score of 2)?

A) 185

B) 212

C) 223

D) 244

2. Some customer support call center let incoming callers know how long they would be on hold before talking to a service agent. This improves customer experience because:

it lessens the perception of unfairness in waiting

unoccupied time seems longer than occupied

in-process waits seem shorter than pre-process waits

uncertain waits seem longer than certain waits

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M93132277

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