H&C is conducting inventory planning for a specific electronic component A: Demand = 100 units/week, standard deviation of demand = 40 units Delivery lead time = 2 weeks, standard deviation of lead time = 0 Annual holding cost per unit - 20% of unit cost Ordering cost = $10.00/order Unit Cost = $8.00 per unit Desired cycle service level = 95% (Z=1.65) Assume 52 weeks per year. 1. What is the economic order quantity (EOQ)? 2. What is the required safety stock? 3. Component A is currently ordered in quantities of 100. What are the current total annual ordering and carrying costs? 4. How much would H&C save in total order+carrying costs by changing to the EOQ? 5. What is the difference in safety stock quantities (Z*o) if component A is managed using a periodic review model versus a continuous review model? (assuming order interval (OI) = 3 weeks) 6. What is the required safety stock if the standard deviation of lead time (ot) equals 1? Hint: oddit = Vio+ do