Question: Please answer and explain the two questions. Thank you! A toy manufacturer uses approximately 32,000 silicon chips annually. The chips are used at a steady

Please answer and explain the two questions. Thank you!

A toy manufacturer uses approximately 32,000 silicon chips annually. The chips are used at a steady rate during the 240 days a year that the plant operates. Annual holding cost is $5 per silicon chip. The optimal ordering quantity is 6030 chips per order. What is the total annual carrying cost under the optimal inventory management policy? Round to the nearest integer Answer: One item a com o re sells is supplied by a vendor who handles only that item. Demand for that item recently changed, and the store manager must determine when to replenish it. The manager wants a probability of at least 96 percent of not having a stockout during lead time. The manager expects demand to average a dozen units a day and have a standard deviation of 3 units a day. Lead time is variable, averaging 3 days with a standard deviation of one day. Assume normality and that seasonality is not a factor. What is the reorder point to achieve the desired service level? (round to 2 decimal places)

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