Question: A manager is analyzing the inventory management for the component RF Receiver. Information Below. This component is ordered once a month (first working day of

A manager is analyzing the inventory management

A manager is analyzing the inventory management for the component "RF Receiver". Information Below. This component is ordered once a month (first working day of the month) Component name Price Annual Per Consumption unit (in (in Units) $) 3784 76 Total Cumulative consumption (in $) Consumption Percentage Classification RF Receiver 287584 29.13% 29.13%A The demand of this component follows a normal distribution with a standard deviation of 0.3 units per day. The annual unit holding cost represents 10% of the unit cost and the order cost is $25. The production plant is open 240 days per year and 20 days every month The supplier of component "RF Receiver" can deliver in 6 working days. We wish to maintain a service level of 98% Z value for 98% = 2.06 The company has 83 "RF Receivers in stock ending April 30, How many RF Receivers should the order in the morning of May 1517 5 points How much money would they save if they switched to Reorder point Model? 10 points

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