Question: A manager is analyzing the inventory management for the component RF Receiver- Information Below. This component is ordered once a month. (first working de 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 de of the month) Component name Annual Consumption (in Units) Price Per unit (in $) Total consumption (in $) % Cumulative Consumption Percentage Classification RF Receiver 5784 86 287584 29.13% 29.13% A The demand of this component follows a normal distribution with a standard deviation of 0.4 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 30th, How many RF Receivers should the order in the morning of May 1st? 5 points How much money would they save if they switched to Reorder point Model? 10 points

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