Question: Inventory System Problem Parameters 2 3 Daily demand for an an inventory item is normally distributed with average value of 34 units per day The

Inventory System Problem Parameters 2 3 Daily demand for an an inventory item is normally distributed with average value of 34 units per day The standard deviation of daily demand is 5 5 The item is used 365 days per year 6 7 We buy the item for $60 per unit 8 Each time we order, we incur fixed ordering costs of $125 per order 9 Our annual carrying cost rate is 25% 20 When we order replenishment inventory, the order lead time is 6 days 11 12 The ordering policy currently being used is: 13 Whenever inventory position falls to R = 230 units, an order is placed for Q=680 units 14 n Question 15 6 pts Using the information on the "Inventory System Problem" tab of the Exam 2 Question Parameters workbook: If we were going to use a periodic review (P. T) system for this item, what target inventory level T would be used to establish a 99% service level? What is the safety stock? PROVIDE YOUR ANSWER BELOW, AND CLEARLY LABEL BOTH PARTS OF YOUR FINAL ANSWER SHOW YOUR WORK BELOW, OR IN A SEPARATE DOCUMENT UPLOADED TO Exam 2: File Submissions

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