Question: Instructions: Clearly write down the formula you use; Show all the steps, including the intermediate ones; Clearly indicate your final answer (with the associated unit

Instructions: Clearly write down the formula you

Instructions: Clearly write down the formula you use; Show all the steps, including the intermediate ones; Clearly indicate your final answer (with the associated unit whenever applicable) to the question; You can round the numbers up to 2 decimal places for all calculations. Question 3: A company opens every day and it replenishes its inventory every two weeks when the salesperson visits the premises. Demand for the product averages 20 units per day with a standard deviation of 5 units. Lead time for the product to arrive is 6 days. The management has a goal of a 92 percent probability of not stocking out for this product. (a) Based on the problem information, identify the inventory management system used in this company. (b) The salesperson is due to come in today when 180 units are left in stock currently. How many units should be ordered now? SCO 3001 Formula Sheet - Inventory Management Service level Total Cost = S Service factor + Sprice H 85.00% 1.04 EOQ 86.00% 1.08 87.00% 1.13 2 SD Q= 2 SD = ic H 88.00% 1.17 R= L XD 89.00% 1.23 90.00% 1.28 91.00% 1.34 Q-system 92.00% 1.41 2SD Q = 2 SD ic H 93.00% 1.48 R = L XD+ZOVI 94.00% 1.55 95.00% 1.64 96.00% 1.75 P-system 97.00% 1.88 2 SD 2 SD Pall 98.00% 2.05 ic H 99.00% 2.33 T (P +L) XD +ZO VP+ L

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