IT'S NOT THE SAME QUESTION ON CHEGG! PLEASE SOLVE

(Southern Fresh) Shelf space in the grocery business is a valuable asset. Every good supermarket spends a significant amount of effort attempting to determine the optimal shelf space allocation across products. Many factors are relevant to this decision: the profitability of each product, the size of each product, the demand characteristics of each product, and so forth. Consider Hot Bull corn chips, a local favorite. Average daily demand for this product is 55, with a standard deviation of 30. Bags of Hot Bull can be stacked 20 deep per facing. (A facing is the width on a shelf required to display one item of a product.)

Deliveries from Southern Freshs central warehouse occur two days after a store manager submits an order. (Actually, in most stores, orders are generated by a centralized computer system that is linked to its point-of-sales data. But even these orders are received two days after they are transmitted.)

a. Assuming Southern Fresh orders from the central warehouse at the close of business each day, what order-up-to level should it use to achieve a 98.75 percent in-stock probability? Choose the closest answer.

b. At the end of the day, there are 100 bags of Hot Bull chips on order and 145 bags on the shelf. Using the order-up-to level from the previous question, how many bags of Hot Bull chips should the store order?

c. The question in the book asks: How many facings are needed to achieve a 98.75 percent in-stock probability?

True or False: It be wise for Southern Fresh to compute the number of facings of shelf space allocated to Hot Bull chips by dividing the order-up-to level from Question ? by 20 to translate the number of bags to the corresponding number of facings