4. An appliance store carries a certain brand of TV that has the following characteristics: Average...

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4. An appliance store carries a certain brand of TV that has the following characteristics: Average annual sales= 200units Ordering cost = $25 per order Carrying cost = 25 percent per year Item cost = $400 per unit Lead time = 4 days Standard deviation of daily demand= 0.1 unit Working days per year = 250 a. Determine the EOQ. (2 Marks) b. Calculate the reorder point for a 95 percent service level, assuming normal demand. c. State the Q rule for this item. d. Study the effect on reorder point of changes in lead time or in standard deviation. (4 Marks) (2 Marks) (5 Marks) 4. An appliance store carries a certain brand of TV that has the following characteristics: Average annual sales= 200units Ordering cost = $25 per order Carrying cost = 25 percent per year Item cost = $400 per unit Lead time = 4 days Standard deviation of daily demand= 0.1 unit Working days per year = 250 a. Determine the EOQ. (2 Marks) b. Calculate the reorder point for a 95 percent service level, assuming normal demand. c. State the Q rule for this item. d. Study the effect on reorder point of changes in lead time or in standard deviation. (4 Marks) (2 Marks) (5 Marks)