Question: PLEASE DO D AND E Q1 (40 points): An allergy products superstore sells 500 of their most popular model of air filters each month. The

PLEASE DO D AND E

PLEASE DO D AND E Q1 (40 points): An allergy products superstoresells 500 of their most popular model of air filters each month.

Q1 (40 points): An allergy products superstore sells 500 of their most popular model of air filters each month. The cost of ordering and receiving shipments is $20 per order. Accounting estimates that annual inventory holding cost per unit is $6. Assume there are 240 days per year ( 20 days per month). The supplier lead time is 2 days. a. What quantity should the store order with each order? Please provide an integer number. (10 points) d. What is the store's minimum total annual cost of placing orders \& carrying inventory? (10 points) e. Suppose the superstore wishes to maintain in-stock probability of 90%. The demand within the lead time is normal distributed with standard deviation 14.14. What is the re-order point? The z-score for 0.9 is 1.28 . (10 points) Q1 (40 points): An allergy products superstore sells 500 of their most popular model of air filters each month. The cost of ordering and receiving shipments is $20 per order. Accounting estimates that annual inventory holding cost per unit is $6. Assume there are 240 days per year ( 20 days per month). The supplier lead time is 2 days. a. What quantity should the store order with each order? Please provide an integer number. (10 points) d. What is the store's minimum total annual cost of placing orders \& carrying inventory? (10 points) e. Suppose the superstore wishes to maintain in-stock probability of 90%. The demand within the lead time is normal distributed with standard deviation 14.14. What is the re-order point? The z-score for 0.9 is 1.28 . (10 points)

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