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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
Organizations can avoid investing in training and development activities because it is difficult to quantify the ROI (return on investment).
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