Hi! I need help with this Operations Management Case under Inventory Management. I badly need to submit this. I have posted this problem already but no one answered it yet directly. I just need someone's expertise to help me with this one. I would highly appreciate it.

AGA-Fano Gas AGA-Fano Gas supplies industrial gases to resellers and custom- ers in Paraguay. One of the reseller is Acitelena S.A. owned by Javier Bermudez. The current supply contract with AGA-Fano states that if Acitelena places an order before 12:00, the items will be delivered the next day. AGA-Fana charges Acitelena $20 per each product ordered, regardless of ordersize. Acitelena is quite a small reseller and has only 10 different gas- cylinders in its assortment. The weekly demand per product is shown in the table below. PRODUCT PRICE (5) WEEKLY STANDARD DEMAND DEVIATION Acetylen 50 L 102 197 43 Acetylen 15 L 26 87 34 Mison 20L 67 40 12 Mison 50 L 96 110 19 Hydrogen 50 L 167 40 6 Medical Oxygen 2L 14 87 12 Medical Oxygen 5 L 23 113 Javier's daughter Lena has recently graduated from univer- sity with logistics management as her main subject. She has now started working together with her father in the family business. Her first task was to revise her father's replenishment strategy. In order simplify the work he had decided to place orders every PRODUCT PRICE (S) STANDARD DEVIATION 15 Industrial Oxygen 20 L Industrial Oxygen 50 L WEEKLY DEMAND 70 176 50 80 62 22 40 17 Argon 20L Argon-Mixture 20 L 73 52 19 Thursday, he would then order exactly what had been sold since last time he placed an order. In addition he had also decided to keep a certain safety stock per product, since he knew that demand does vary between weeks. His safety stock is shown in below table insight is that they should employ a traditional re-order-point- system. After some discussions with her father they also came to the conclusion that the annual holding cost per cylinder is 15% of the value. She decides also to apply a 98% service level, instead of her fathers old safety stock. Short after Lena has introduced the new replenishment strategy: Kenneth Freeman, supply manager at AGA-Fano, con- tacted her. Kenneth is not happy with the development and wants to discuss a new supply contract even though the contract is valid for another 2.5 years. PRODUCT JAVIER'S SAFETY STOCK Industrial Oxygen 20 L 70 Industrial Oxygen 50 L 100 Argon 20L 25 Argon-Mixture 20 L 20 Acetylen 50 L 150 Acetylen 15 L 40 Mison 20L 20 Mison 50 L 50 Hydrogen 50 L 10 Medical Oxygen 2 L 10 Medical Oxygen 5 L 10 Lena realizes that it should be possible to save quite some money if she would optimize the replenishment strategy. Her first Discussion Questions 1. How much would Lena's new strategy save for the Acitelenacompanyon an annual basis? Assume 52 weeks per year and 5 days per week. 2. Why would Kenneth not be happy with the new strategy? 3. When Kenneth suggests Lena that they should go back to weekly deliveries, Lena accepts this as long as the fixed cost is per the whole delivery (not pet product). What would be the highest acceptable level on the fixed cost for Lena, if she should accept to change the terms of the contract