Exercise 1 Daily demand for a certain product is normally distributed with a mean of 100 and a standard deviation of 15. The supplier is reliable and maintains a constant lead time of 5 days. The cost of placing an order is $10 and the cost of holding inventory is $0.50 per unit per year. There are no stockout costs, and unfilled orders are filled as soon as the order arrives. Assume sales occur over 360 days of the year. Your goal here is to find the order quantity and reorder point to satisfy a 90 percent probability of not stocking out during the lead time (z=1.28). a. Find the order quantity. b. Find the reorder point. Write the inventory policy. C. Exercise 2 Jill's Job Shop buys parts for use in its production system. The parts are needed throughout the entire 52-week year. The parts are used at a relatively constant rate and are ordered whenever the remaining quantity drops to a certain level. Annual demand 10,000 Holding cost (% of item cost) 20% Setup or order cost $150.00 Lead time Safety stock 55 units Item cost $10.00 4 weeks a. What is the order quantity? b. What is the reorder point? c. Write the inventory policy. d. What is the total (purchase ordering, holding) cost per year