Question: Feels Like 98 has set the order quantity at 150 units each time it orders brewery branded growlers that it has for sale in the

Feels Like 98 has set the order quantity at 150

Feels Like 98 has set the order quantity at 150 units each time it orders brewery branded growlers that it has for sale in the store. The daily demand is normally distributed, with a mean of 12 units and a standard deviation of 4. It always takes exactly 1 week for an order to arrive after the order is placed. Holding cost has been determined to be $10 per growler per year. Due to the large volume of items sold, the brewery's manager want to maintain a 99% service level and sells growlers 7 days per week. Use this information above to answer questions 4 through 6. Question 4 5 pts What is the standard deviation of demand during the lead time period? Answer to two decimal places Question 5 5 pts How much safety stock should be carried to maintain a 99% service level? Answer to two decimal places 27.96 Question 6 5 pts What is the total annual holding cost when considering the safety stock calculated in Question 5 (i.e. include the amount of safety stock in the inventory that is kept when you calculate annual holding cost). Answer to two decimal places

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