A certain products daily demand is normally distributed with m 300 and s 70 Assume 360 days per year The firm follows fixed Q model where they order the Economic Order Quantity Lead time is 9 days Ordering cost $200 00 It costs $15 00 to buy the item Holding rate is 18 What is the cycle time in days And, what is the annual inventory cost excluding the purchase cost (i e , the total of ordering and holding cost) If the firm wants to maintain an 85 service level, what is the safety stock in number of units What is the annual cost of this safety stock in dollars per year

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Question: A certain products daily demand is normally distributed with m = 300 and s = 70. Assume 360 days per year. The firm follows fixed

A certain products daily demand is normally distributed with m = 300 and s = 70. Assume 360 days per year. The firm follows fixed Q model where they order the Economic Order Quantity. Lead time is 9 days. Ordering cost = $200.00. It costs $15.00 to buy the item. Holding rate is 18%.

What is the cycle time in days? And, what is the annual inventory cost excluding the purchase cost? (i.e., the total of ordering and holding cost)
If the firm wants to maintain an 85% service level, what is the safety stock in number of units?
What is the annual cost of this safety stock in dollars per year?

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