A product’s demand in each period follows a normal distribution with mean of [mu] and standard deviation of 10. The order-up-to level is 200 and the lead time is [L] periods. What is the expected on-order inventory?

Which concept from class is most closely related to what Joe Heisser from Kimberly-Clark spoke about regarding Huggies Wipes?

A product’s demand per period follows a normal distribution with mean of 50 and standard deviation of 20. The lead time is [L] periods. What order-up-to level should be used to achieve at least a 95% in-stock probability? 

A souvenir store sells New Year’s Eve sweatshirts with the year and a slogan printed on them for $25 each. The sweatshirts cost $12 each to purchase from their supplier. Demand for the sweatshirts is normally distributed with a mean of 250 and a standard deviation of 40. The week after New Year’s, unsold shirts are donated free to a local Goodwill store. The souvenir store receives a tax refund (credit) of $5 for every sweatshirt that it donates. What is the critical ratio?

Which of the following statements is FALSE regarding the moving average forecast?

In the Newsvendor model, which change would cause the optimal order quantity to decrease? (Assume only one change happens at a time.)

Which of the following does not apply to the order-up-to model?

If a smoothing parameter of zero is used in an exponential smoothing forecast model, what is the practical result?

A souvenir store sells New Year’s Eve sweatshirts with the year and a slogan printed on them for $[p] each. The sweatshirts cost $[c] each to purchase from their supplier. Demand for the sweatshirts is normally distributed with a mean of [mu] and a standard deviation of 40. The week after New Year’s, unsold shirts are donated free to a local Goodwill store. The souvenir store receives a tax refund (credit) of $4 for every sweatshirt that it donates. What is the underage cost?

Given the following three periods of data, what is the MSE? Period Actual Demand Demand Forecast 1 93 92 2 94 91 3 91 93