1. What happens to the validity of the EOQ model of orderingwhen the reorder point (ROP) exceeds the maximum inventory levelduring each cycle of replenishment? Use suitable sketches tosupport your answer. Limit your answer to two pages
2. For the normal distribution, “joint sufficiency condition”implies one needs only to know the mean and standard deviation ofthe data distribution to be able to apply it. With this as afundamental principle, discuss the significance of the “Z-score”.Use suitable sketches to support your answer. Limit your answerto two pages
3. While solving linear programming problems involvingtwo variables using the graphical method, will the optimal solution(assuming there is one) only be at corner points of the feasiblesolution space? Discuss with suitable sketches
