Question: 1 . The historical data maintained by an electric water pump manufacturer show that the model PL 4 0 with flow rate of (

1. The historical data maintained by an electric water pump manufacturer show that the model PL40 with flow rate of \(40\mathrm{l}/\mathrm{min}\) has an annual demand of 20,000 pumps. The company needs to purchase the electric motor required for this pump from a specialised manufacturer and maintain sufficient stock in the inventory to manage the daily production of water pumps without disruptions. The daily need of electric motors for production shows a normal distribution with a standard deviation of 12 electric motors a day. The supplier takes 14 days to supply the motors once an order is placed. The estimated ordering cost is \(\$ 700\) per order and the annual holding cost per motor is \(\$ 5\). The company operates 260 days a year.
(a) Estimate the economic order quantity (EOQ) for the electric motors.
(b) Estimate the reorder point (ROP) to maintain a service level of \(95\%\).
(c) What is the annual holding cost of electric motors?
 1. The historical data maintained by an electric water pump manufacturer

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