Question: I have 6 hours Problem 1 (15 points). For a given product, let's assume an economic order quantity of 200 units; where the annual demand

I have 6 hours Problem 1 (15 points). For a given

I have 6 hours

Problem 1 (15 points). For a given product, let's assume an economic order quantity of 200 units; where the annual demand is 1,000 units. Per Management feedback, the desired probability of stocking out is 5%. From statistical analysis of this product, the standard deviation of demand during lead time L=25 units, and the manufacturing lead time is 15 days. a. (5 points). Determine the safety stock needed b. (5 points). Determine the reorder point. Assume that demand is over a 250 -workday year. c. (5 points). How many need to be ordered when stock on hand gets down the reorder point

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