Question: A shop is open 5 days per week and 50 weeks per year. The weekly demand for water bottles is normally distributed with an average

A shop is open 5 days per week and 50 weeks per

A shop is open 5 days per week and 50 weeks per year. The weekly demand for water bottles is normally distributed with an average of 80 bottles per week, and a standard deviation of 10 bottles. Each bottle costs 500 Baisas. Orders cost OMR2 and the holding rate is 10% per year. 1. Compute the EOQ and the number of orders on average made during the year. 2. The shop owner wishes to maintain a 95% service level. What would be the safety stock, the reorder point and the total cost if: a) There is a constant lead time of 3 weeks? b) The average lead time is 2 weeks, with a standard deviation of 1 week

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