Question: Answer this question and the next one according to the following statement. A coffee roaster in Austin TX has opened a retail store in Dallas

Answer this question and the next one according to the following statement. A coffee roaster in Austin TX has opened a retail store in Dallas TX. The plant manager in Austin wishes to optimize the inventory costs of the company's best-selling coffee. The annual demand for the coffee is 36,000 bags and the plant works 240 days per yr. The plant can roast the coffee at a rate of 300 bags per day. The cost to prepare the equipment to start a production run is $400 and the annual inventory carrying cost is $0.9 per year. What should be the optimum quantity of coffee to produce? I QUESTION 7 The annual demand is normally distributed with the standard deviation of 3,000 bags. Let the shipments from Austin to Dallas take on average 6 days. The store in Dallas works 300 days a year. If the store in Dallas aims to achieve 95% service level, how many bags of safety stock should be carried

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