Please answer the question below :

1.A restaurant has a demand of 10 bottles of ketchup per day with standard deviation 3 bottles. The restaurant manager has to perform a review period of 7 days. The supplier has 2 days lead time. She is pushed to keep 95% of service level, meanwhile she has around 5 bottles on hand.

a.What models is to be used by restaurant manager to order the ketchup from the supplier. Explain your arguments.

b.How many bottles to be ordered at this review period?

2.PT. Lamp Abah Sinar (PT. LAS) is lighting home store in Cirebon. The company has to determine the order quantity for the favorite item (Drakor Lighting) with an annual demand of 45,000 units. The cost of placing an order is Rp 750,000. Annual carrying cost, storage, interest, obsolescence of the item is calculated for 30% of the item purchase price per unit. The suppliers are offering the following discount as listed in Table 1.

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