Question: 8 . EOQ ( 1 0 points ) You are the buyer for a spice company. The product you are responsible for purchasing is the

8. EOQ (10 points) You are the buyer for a spice company. The product you are responsible for purchasing is the new summer grilling product. This lipstick has an average demand of 49 cases/per week with a standard deviation of 9. This item is purchased from Nevada and due to high demand has a lead time of 21 days with a standard deviation of 3. Each time an order is placed, the buyer incurs a cost of $20. The inventory carrying cost is approximately 9%. Each case costs $136. The company want to maintain a service level of 99.0% for the launch. (Assume 52 weeks per year)(consider the case the unit)
Find Z if service level is: Represents confidence level
95%=1.64
97.5%=1.96
98%=2.05
98.5%=2.17
99%=2.32
99.9%=3.09

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