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

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 same

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