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ABC & Co is an undisrupted power supply distributor. It supplies two main products to 400 stores across Brazil with local safe inventory. The two main products are: . a Back-UPC product that is sold at Brazilian Real (R$) 1100 that is low cost but high demand. The weekly demand at each store is normally distributed, with a mean of 1200 and standard deviation of 48. a Smart-Connect UPC product that is sold at R$ 12000 that is high cost but low demand. The weekly demand at each store is normally distributed, with a mean of 175 and a standard deviation of 90. Demand experienced by each store is independent, and supply lead time for both products is 16 weeks. ABC has a weekly holding cost of 1.5%. ABC hopes to keep its Cycle Service Level at 0.95. Question Answers Question 1: Calculate safety inventory per store for both products. (5) Question 2: If the supplier reduces lead time for Back- UPC from 16 weeks to 8 weeks, what savings in safety inventory can the store expect from the Back-UPC product? (5) Question 3: If the demand uncertainty for Smart- Connect UPC is reduced by half, what weekly savings in safety inventory can the store expect from the Smart-Connect UPC product? (5) Question 4 (Extra Credit): Continue from Q1 without assumptions made in Q2 and Q3, management requested a re-evaluation ifto remove the safety inventory from the retail stores and carry only in a centralized Distribution Center in Sao Paulo. Calculate the weekly carrying cost saving as a result of centralized safety stock for both products. (3) Question 5 (Extra Credit): Is it true that the lower the coefficient of variation of an item, the greater the reduction in safety inventories as a result of centralization? (2)