GENERAL INSTRUCTIONS:

Solve the problem$/$questions below based on our textbook.

Open notes.

Problem: From the data given below, assume that a buyer and a seller have a current relationship with the stated performance levels and the seller is proposing a shorter, more reliable order cycle time.

$\backslash$table$[[,$CURRENT,PROPOSED$],[$Average order cycle time,$8,$days,$5,$days$],[$Standard deviation of OCT,$3,$days,$1,$day$],[$Demand per day $($units$),4,400,4,400,,],[$Service level,$97\mathrm{.}7,\%,97\mathrm{.}7,\%$