Question: Please answer all the parts with steps and formulas. PLEASE dont use chatgpt. Harvey's Specialty Shop is a popular spot that specializes in international gourmet

Please answer all the parts with steps and formulas. PLEASE dont use

Please answer all the parts with steps and formulas. PLEASE dont use chatgpt.

Harvey's Specialty Shop is a popular spot that specializes in international gourmet foods. One of the items that Harvey sells is a popular mustard that he purchases from an English company. The mustard costs \$25 a jar and requires a 3-month lead time for replenishment of stock. The replenishment time is constant. Harvey uses a 20% annual interest rate to compute holding costs. Bookkeeping expenses for placing an order amount to about \$60. During the 3-month supply time, Harvey estimates that he sells an average of 150 jars but there is substantial variation. He estimates the standard deviation of demand for each 3 -month period is 25 . Assume that demand is described by a normal distribution. a) What is the optimal order quantity? b) What will be the average time between transactions? c) How much safety stock should be maintained for 96% cycle service level? d) What should be the reorder point for 96% fill rate? e) Now suppose that the English company is ready to send the mustard by a faster ship, which will reduce the replenishment lead time to 1 -month and the standard deviation of demand during that period to 14.4, but increase the cost to $30 per jar. What will be the new reorder point for 96% fill rate service level? f) In order to achieve 96% fill rate service, what will be the optimal total inventory cost (Ordering + Holding + Purchase) before and after the decrease of lead time (and resultant price increase)? What managerial insights can you get from this

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