Answer ONLY part C portion with the 2 P1 values (re-order points) Part A and B are given for information purposes. Chapter 6, Inventory and Production Management in Supply Chains Edition 4 by Edward A. Silver, David F. Pyke and Douglas J. Thomas.

6.20' Consider the following product line: Demand D Vi 01,1 Item i (Units/Year) ($/Units) (Units) 1 100 250.00 45 100.00 2 200 30.00 140 100.00 3 300 250.00 210 150.00 4 60 210.00 35 150.00 Inventory carrying charges are 0.12 $1$/year, and the lead time is 3 months. Management feels that a fractional charge of 0.3 for each item short should be considered. Assume that lead time demand is normally distributed. a. Determine the optimal (s, 0 policy, identifying SS, reorder point, and reorder quantity for each item using the EOQ. b. After more careful study, management realized that lead time demand is better described by the Gamma distribution. Adjust the (s, 0 policy in the previous question to account for the actual distribution. c. Data from the previous 10 cycles give the actual lead time demand for item 3 as follows: 0 32 308 77 60 105 681 2088 For 6.20.C What should be the re-order point for this SKU, if the targeted cycle service level is: a) P1= 0.8 b) P1= 0.95