D Question 18 What is the economic order quantity? O 3835 Muscle Bound is a chain of fitness stores located in many large shopping centers. Recently, an internal memo from the CEO to all operations personnel complained about the budget over-runs at Muscle Bound's central warehouse. In particular, she said that inventories were too high and that the budget will be cut dramatically and proportionately equal for all items in the stock. Consequently, warehouse management set up a pilot study to see what effect the budget cuts would have on customer service. They choose 5-pound barbells, which are a high volume SKU and consume considerable warehouse space. Daily demand for the barbells is 1000 units, with a standard deviation of 150 units. Ordering costs are $40 per order. Holding costs are $2 per unit per year. The supplier is located in the Philippines: consequently, the lead time is 35 days with a standard deviation of 5 days. Muscle Bound stores operate 313 days a year (no Sundays). Barbells are allocated a budget of $16000 for total annual costs and Muscle Bound chooses to use a continuous inventory system. 3635 3385 O 3130 O 3538 Question 19 Question 17 1 pts What is the standard deviation of demand (barbells) during lead time? What is the best service level management can expect from their system? O 0507 O 19% 0 7850 O 88% 0 5148 O 12% 5870 O 50% 05078 81%