C. Problem Solving 1. (15 points) Harvey's Specialty Shop is a popular spot that specializes in international gourmet foods. One of the items that Harvey sells is a popular mustard that he purchases from an English company. The mustard cost Harvey S10 a jar and requires a six-month lead time for replenishment of stock. Harvey uses a 20% annual interest rate to compute holding costs and estimates that if a customer requests the mustard when he is out of stock, the loss-of-goodwill cost is $25 a jar. Bookkeeping expenses for placing an order amount to about SSO. During the six-month replenishment lead time, Harvey estimates that he sells an average of 100 jars (ar 100), but there is substantial variation from one six-month period to the next. He estimates that the standard deviation of curing each six-month period is 20. Assume that demand is described by a normal distribution. Harvey would like to find the optimal replenishment size to restock mustard jars. He starts with a order size equal to E0Q, and find a reorder point and the expected number of shortages (R) associated with R. () What is the value of R? Show calculations, (b) What is the value of n{Ry? Show calculations (c) Using the answers obtained in (a) and (b), find the new order size 2. (10 points) The product structure of Awesome speaker is shown below. Level Product structure for "Awesome" (A)