Question: i want D only , only Part D please Question 2 Floyd Distributors Inc. provides a variety of auto parts to small local garages. It

i want D only , only Part D please
Question 2 Floyd Distributors Inc. provides a variety of auto parts to small local garages. It purchases parts from manufacturers according to the EOQ model and then ships the parts from a regional warehouse directly to its customers. For a particular type of muffler, Floyd's EOQ analysis recommends orders with Q* = 25 to satisfy an annual demand of 200 mufflers. There are 250 working days per year, and the lead time averages 15 days. (Further information: for inventory system using the constant demand rate assumption and a fixed lead time, the reorder point is the same as the lead-time demand. The general expression of reorder point is: r = dm (where r=recorder point, d= demand per day and m = lead time for a new order in days). a. State the EOQ formula. (3 marks) b. What is the reorder point if Floyd assumes a constant demand rate? (6 marks) c. Suppose an analysis of Floyd's muffler demand shows that the lead-time demand follows a normal distribution, with u = 12 and o = 2.5. If Floyd's managers can tolerate one stockout per year, what is the revised reorder point? (10 marks) d. Why is it important to measure inventory-system performance? Discuss how inventory-profile reports assist in evaluating inventory systems regarding the above caseStep by Step Solution
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