a$.$ Determine the economic order quantity for these flash transistors. b$.$ Determine the reorder point for a $95\%$ service level.Question $1$

DiskSan has to order flash transistors $($ $$9$ each$)$ to create USB flash memory drives. Their monthly

demand is $15,000$ units, their holding cost $($which is mostly comprised of obsolescence costs$)$ is $12\%$

per month per dollar in inventory, and the setup costs for an order is $$12($mostly paperwork etc.$).$

Determine the economic order quantity for these flash transistors.

Round your answer to an integer order amount.

Question $2$

One of the most$-$often sold items at a grocery store is milk. The daily demand for milk at a local

grocery store is $2200$ half gallon jugs that sell for $$1\mathrm{.}5$ each. The standard deviation in demand is

$318$ half gallon jugs per day, and the holding costs can be estimated at $4\%$ per day $($i$.$e$.,$ cooling cost,

as well as the cost of having to throw out milk that has passed its sell$-$by date$).$ The cost for an order

is $$102$ based on the fee paid to the party that delivers the milk $($who needs three days to deliver a

new batch$).$ Determine the reorder point for a $95\%$ service level.

Round your answer to an integer number of half gallon jugs.