Question: i need full answer with formulas. Management has decided that it will tolerate no more than 1 Stock-out every 2 years The forecast demand for

i need full answer with formulas.

Management has decided that it will tolerate no more than 1 Stock-out every 2 years The forecast demand for the particular SKU is 100000 units, the company operates for 50 wecke in a year. The product is ordered in quantities of 5000 unit. The lead time is 3 weeks. The sales history is given for the past ten weeks as follows Week Actual demand Deviation Variance 7 2150 12 2250 3 1700 4 2100 5 1800 6 2350 7 2200 8 1600 9 1750 10 2100 Total Mean Variance Calculate the ROP for the above policy (6 marks) Show all Calculations b The management intends to increase the service level to 99%. The cost of carrying inventory is $5 per year. What the cost of changing the inventory to maintain this level of service. Show all Calculations (4 marks) a

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