1. [20 points] The demand and order data for a product is given below: Average demand = 150 items/week. Normally distributed. Standard deviation of demand = 100 items/week K = Order cost $60/order Holding cost rate = 20% Unit cost = $25 - Lead time = 1 week (constant) Operating weeks = 50 weeks a year. a. Calculate the economic order quantity for the product. b. Calculate the safety stock for the product. C. What are the maximum and average space requirements? Show all calculations to earn full credit. d. What are the factors that you would consider determining whether this product needs dedicated storage or shared storage? What storage method would you recommend?

[20 points] The demand and order data for a product is given below: Average demand =150 items/week. Normally distributed. Standard deviation of demand =100 items/week Order cost =$60/ order Holding cost rate =20% Unit cost =$25 Lead time =1 week (constant) Operating weeks =50 weeks a year. a. Calculate the economic order quantity for the product. b. Calculate the safety stock for the product. c. What are the maximum and average space requirements? Show all calculations to earn full credit. d. What are the factors that you would consider determining whether this product needs dedicated storage or shared storage? What storage method would you recommend