$8. The demand exhibits some variability such that the lead-time A product with an annual demand of 700 units has Co = $37.50 and Ch. demand follows a normal probability distribution with u = 25 and o = 5. Note: Use Appendix B to identify the areas for the standard normal distribution. a. What is the recommended order quantity? Round your answer to the nearest whole number. Q* = b. What are the reorder point and safety stock if the firm desires at most a 7% probability of stock-out on any given order cycle? If required, round your answers to the nearest whole number. Record point Safety stock = c. If a manager sets the reorder point at 31, what is the probability of a stock-out on any given order cycle? If required, round your answer to four decimal places. Round z value to two decimals. P(Stock-out/cycle) - How many times would you expect a stock-out during the year if this reorder point were used? Round your answer to the nearest whole number. Number of Stock-outs/year Cumulative probability Entries in the table give the area under the curve to the left of the z value. For example, for z=-0.85, the cumulative probability is 0.1977. z 0 z 0.00 0.01 0.02 0.03 0.04 0.05 0.06 0.07 0.08 0.09 -3.0 0.0013 0.0013 0.0013 0.0012 0.0012 0.0011 0.0011 0.0011 0.0010 0.0010 -2.9 -2.8 -2.7 -2.6 -2.5 0.0019 0.0018 0.0018 0.0017 0.0016 0.0016 0.0015 0.0015 0.0014 0.0014 0.0026 0.0025 0.0024 0.0023 0.0023 0.0022 0.0021 0.0021 0.0020 0.0019 0.0035 0.0034 0.0033 0.0032 0.0031 0.0030 0.0029 0.0028 0.0027 0.0026 0.0047 0.0045 0.0044 0.0043 0.0041 0.0040 0.0039 0.0038 0.0037 0.0036 0.0062 0.0060 0.0059 0.0057 0.0055 0.0054 0.0052 0.0051 0.0049 0.0048 -2.4 -2.3 -2.2 -2.1 -2.0 0.0082 0.0080 0.0078 0.0075 0.0107 0.0104 0.0102 0.0099 0.0139 0.0136 0.0132 0.0129 0.0179 0.0174 0.0170 0.0166 0.0228 0.0222 0.0217 0.0212 0.0073 0.0096 0.0125 0.0162 0.0207 0.0071 0.0069 0.0094 0.0091 0.0122 0.0119 0.0158 0.0154 0.0202 0.0197 0.0068 0.0066 0.0064 0.0089 0.0087 0.0084 0.0116 0.0113 0.0110 0.0150 0.0146 0.0143 0.0192 0.0188 0.0183 -1.9 -1.8 -1.7 -1.6 -1.5 0.0287 0.0281 0.0274 0.0268 0.0359 0.0351 0.0344 0.0336 0.0446 0.0436 0.0427 0.0418 0.0548 0.0537 0.0526 0.0516 0.0668 0.0655 0.0643 0.0630 0.0262 0.0329 0.0409 0.0505 0.0618 0.0256 0.0250 0.0244 0.0239 0.0233 0.0322 0.0314 0.0307 0.0301 0.0294 0.0401 0.0392 0.0384 0.0375 0.0367 0.0495 0.0485 0.0475 0.0465 0.0455 0.0606 0.0594 0.0582 0.0571 0.0559 -1.4 0.0808 0.0793 0.0778 0.0764 0.0749 0.0735 0.0721 0.0708 0.0694 0.0681 -1.3 0.0968 0.0951 0.0934 0.0918 0.0901 0.0885 0.0869 0.0853 0.0838 0.0823 -1.2 0.1151 0.1131 0.1112 0.1093 0.1075 0.1056 0.1038 0.1020 0.1003 0.0985 - 1.1 0.1357 0.1335 0.1314 0.1292 0.1271 0.1251 0.1230 0.1210 0.1190 0.1170 -1.0 0.1587 0.1562 0.1539 0.1515 0.1492 0.1469 0.1446 0.1423 0.1401 0.1379 -0.9 0.1841 0.1814 0.1788 0.1762 0.1736 0.1711 0.1685 0.1660 0.1635 0.1611 -0.8 0.2119 0.2090 0.2061 0.2033 0.2005 0.1977 0.1949 0.1922 0.1894 0.1867 -0.7 0.2420 0.2389 0.2358 0.2327 0.2296 0.2266 0.2236 0.2206 0.2177 0.2148 -0.6 0.2743 0.2709 0.2676 0.2643 0.2611 0.2578 0.2546 0.2514 0.2483 0.2451 -0.5 0.3085 0.3050 0.3015 0.2981 0.2946 0.2912 0.2877 0.2843 0.2810 0.2776 -0.4 0.3446 0.3409 0.3372 0.3336 0.3300 0.3264 0.3228 0.3192 0.3156 0.3121 -0.3 0.3821 0.3783 0.3745 0.3707 0.3669 0.3632 0.3594 0.3557 0.3520 0.3483 -0.2 0.4207 0.4168 0.4129 0.4090 0.4052 0.4013 0.3974 0.3936 0.3897 0.3859 -0.1 0.4602 0.4562 0.4522 0.4483 0.4443 0.4404 0.4364 0.4325 0.4286 0.4247 -0.0 0.5000 0.4960 0.4920 0.4880 0.4840 0.4801 0.4761 0.4721 0.4681 0.4641