Question: Please calculate and answer in excel The daily demand for a particular product is known to be normally distributed with a mean of 1000 units

Please calculate and answer in excel

  1. The daily demand for a particular product is known to be normally distributed with a mean of 1000 units and standard deviation of 50 units. The lead time for the delivery of this product is 7 days exactly. If the company wishes to maintain a service level of 90% during lead time, what should be the reorder point and safety stock?

2. The estimated demand for a particular product is 100,000 units annually. Per unit cost of the product is $35. The cost of placing an order is $300 (per order). The inventory carrying cost per unit is 20% of the cost of the item. Based on this information, what is the economic order quantity?

Order Quantity

Annual

Item

Cost

Annual

Ordering

Cost

Annual

Carrying

Cost

Annual

Total

Cost

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