A store is having a difficult time keeping a particular hat in stock, especially during the time between placing and receiving orders from the supplier. The store manager wants to make sure that customer orders are filled at the time customers shop at least 99% of the time. She has demand data for the hat for a 30-week period (demand includes actual sales plus a count of the times the hat was requested but not available, and an estimate of the number of times a customer wanted the hat when it was unavailable but did not ask for it.) Week 1 2 3 4 5 6 7 8 9 10 Demand Week Demand Week Demand 38 11 28 21 52 51 12 41 22 38 25 13 37 23 49 60 14 44 24 46 35 15 45 25 47 16 56 26 41 29 17 62 27 39 46 18 53 28 55 19 46 29 28 19 20 41 30 42 50 34 The store buys hats from a supplier with a lead time of 4 weeks but whose delivery lead time is inconsistent, ordering 400 hats when the inventory level gets down to 180 hats. The store has only limited ability to accurately track inventory levels, so the 180 is based on a visual estimate of inventory levels. The manager buys hats for RMB 30 each plus an order charge of RMB 400. She assesses inventory cost at 12% of item cost/unit/year. The manager has asked you to analyze the following issues: 1. The service level the store is currently supporting 2. The order point that allows the desired service level to be supported, and a corresponding order quantity 3. Estimated cost savings by adopting the ordering policies you suggest Given the limitations of inventory tracking at the store, she has also asked you to develop a proposal whereby instead of ordering when stock levels reach a certain level, orders are placed at regular intervals, and to provide the financial implications of adopting this system