Question: PLEASE DO NOT USE ANY DATA FROM OTHER CHEGG ANSWERS. Palin's Muffler Shop has one standard muffler that fits a large variety of cars. The

PLEASE DO NOT USE ANY DATA FROM OTHER CHEGG ANSWERS.
Palin's Muffler Shop has one standard muffler that fits a large variety of cars. The shop wishes to establish a periodic review system to manage inventory of this standard muffler. Use the information in the following table to determine the optimal inventory target level (or order-up-to level). Annual demand Standard deviation of daily demand Item cost Annual holding cost Review period 3,200 6 $21.00 37 17 mufflers mufflers per working day per muffler % of item value working days Ordering cost Service probability Lead time Working days $ 30 per order 95 % 2 working days 200 per year a. What is the optimal target level (order-up-to level)? (Use Excel's NORMSINV() function to find the correct critical value for the given a-level. Do not round intermediate calculations. Round "z" value to 2 decimal places and final answer to the nearest whole number.) Optimal target level b. If the service probability requirement is 90 percent, the optimal target level will: Decrease Increase Stay the sameStep by Step Solution
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