Please answer question 1-3, thank you!

PS: The cost is 115, not 199. The backorder cost is 72%*10, not 75. 72% of vouchers get redeemed.

The objective of this assignment is to get you familiar with applying the order-up-to policy. Please answer the questions below. BlueD is an online retailer for high-quality game audio equipment. Recently, customers around the Chicago area have increasing complaints about the delays in receiving the orders of the Snowball USB microphone, a popular item. BlueD collected 40 weeks of past demands and would like improve the stocking policy for the distribution center located at suburb Chicago. BlueD believes that the weekly customer demand is stable and is about normally distributed. NOTE: The demand data is given in the attached Excel spreadsheet: 4_Excercise_OUTPolicy.xlsx. The inventory record is reviewed on a weekly basis. A purchasing order is issued every Tuesday and the manufacturer delivers on the Tuesday three weeks later. The purchasing price is $115 with the shipping cost paid by the manufacturer. The online selling price is $199. The average storage cost for each microphone is $1.5. When stockout happens, BlueD provides the each customer a $10 voucher for store credit for every week of delay in fulfilling the customer order. Not all customers end up using the voucher. The past experience suggests that about 72% of the issued vouchers are redeemed. The capital cost for the company is 0.5% per week. Please keep two decimals for your answers. Question 1 0.668 / 1 point The unit overage cost is: $ 2.05 The unit underage cost is: $ 7.09 The critical ratio is: - 77.56 ___ %. 0/1 point Question 2 Suppose that BlueD decided to maintain a (type 1) service level of 75%, the order-up-to level should be set at Answer: 1660.00 Question 3 0/1 point Continue on part 2, if the manufacturer is willing to reduce the delivery lead time to 2 weeks, then to maintain a 75% service level, BlueD should set the order-up-to level at Answer: 1132 B C D E 1 The Order-Up-To System: Retrospective Analysis 2 Parameters 3 Cost 199 4 Price 115 5 Storage cost 1.5 6 Backorder 7.2 7 Interest rate 0.5% 8 Leadtime 3 9 #weeks 40 10 11 Historical inventory data 12 Week Demand 13 1 573 14 2 548 15 3 497 16 4 548 17 5 381 18 6 635 19 7 520 20 8 449 21 9 562 22 10 585 23 11 448 24 12 768 NormalApproximation B D 25 226 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 607 681 507 385 513 659 244 403 485 500 304 242 538 573 393 563 392 566 701 587 380 528 296 399 531 582 538 NormalApproximation