Question: answer all parts. correct answer shown. need work and step by step please. Question 4 This school year USC has implemented a new no plastic

answer all parts. correct answer shown. need work

answer all parts. correct answer shown. need work and step by step please.

Question 4 This school year USC has implemented a new "no plastic water bottles on campus" policy in its overall sustainability program. You are the inventory manager for the USC Bookstore, and you need to determine how many custom USC water bottles to purchase and store. You anticipate demand of 600 bottles per month, normally distributed with a standard deviation of 150. You decide to purchase from a logo shop that services all Universities called ULogos4U, or simply ULogos. Once you place your order, it takes 10 days for ULogos to manufacture the custom bottles and then ship them to the USC campus. Each shipment costs $15, regardless of order size. Any investment in inventory incurs an annual 25% financing fee. Each bottle costs $4 to procure. You can assume ULogos works 7 days per week, and the bookstore sell bottles 7 days per week. Assume 30 working days/month and 360 days/year. a) How many water bottles should you include in each order? 464.76 bottles b) If you want to be sure you run out less than 25% of the time, when should you place orders (i.e., your re-order point)? 258.02 bottles c) What is your annual inventory cost? $522.78/yr d) ULogos offers to rush all future orders, reducing lead time to 3 days for an annual $5 fee. Should you take the offer? Explain. Yes, since cost savings =$26.24>$5

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