Question: Please help me out, only two questions. ACold Inc is a frozen food distributor with 10 warehouses across the country. Ivan Tory, one of the

Please help me out, only two questions. ACold Inc Please help me out, only two questions.
Please help me out, only two questions. ACold Inc
Please help me out, only two questions. ACold Inc
ACold Inc is a frozen food distributor with 10 warehouses across the country. Ivan Tory, one of the warehouse managers, wants to make sure that the inventory policies used by the warehouse are minimizing inventory while still maintaining quick delivery to ACold's customers. Since the warehouse carries hundreds of different products, Ivan decided to study one. He picked Caruso's Frozen Pizza (CFP). Average daily demand for CFPs is normally distributed with a mean of 411 and a standard deviation of 156. Since ACold orders at least one truck from their supplier each day, ACold can essentially order any quantity of CFP it wants each day. In fact, ACold's computer system is designed to implement an order-up-to policy for each product. Ivan notes that any order for CFPs arrives 5 days after the order. Suppose an order-up-to level of 2478 is used. What is the expected on-hand inventory? Use Table 14.1 and round to nearest integer. 98 TABLE 14.1 The Distribution Function, F(x), and the Inventory Function, (z), for the Standard Normal Distribution Function 2 F(z) 1(2) F(x) 0000 0.0000 0.1 -4.0 5398 0.4509 -3.9 0000 0.0000 0.2 0.5069 5793 -3.8 0001 0.0000 0.3 6179 0.5668 -3.7 0001 0.0000 0.4 6554 0.6304 -3.6 0002 0.0000 0.5 6915 0.6978 -3.5 0002 0.0001 0.6 7257 0.7687 -3.4 0003 0.0001 0.7 .7580 0.8429 -3.3 0005 0.0001 0.8 7881 0.9202 -3.2 0007 0.0002 0.9 8159 1.0004 -3.1 0010 0.0003 1.0 8413 1.0833 -3.0 0013 0.0004 1.1 8643 1.1686 -2.9 0019 0.0005 1.2 8849 1.2561 -2.8 0026 0.0008 1.3 .9032 1.3455 -2.7 0035 0.0011 1.4 9192 1.4367 -2.6 0047 0.0015 1.5 9332 1.5293 -25 0062 0.0020 1.6 9452 1.6232 -2.4 0082 0.0027 1.7 9554 1.7183 -2.3 0107 0.0037 1.8 9641 1.8143 -2.2 0139 0.0049 1.9 9713 1.9111 -2.1 0179 0.0065 2.0 9772 2.0085 -2.0 0228 0.0085 2.1 9821 2.1065 -1.9 0287 0.0111 2.2 9861 2.2049 -1.8 0359 0.0143 2.3 9893 2.3037 -1.7 0446 0.0183 2.4 9918 2.4027 -1.6 0548 0.0232 2.5 9938 2.5020 -1.5 0668 0.0293 2.6 9953 2.6015 -1.4 0808 0.0367 2.7 9965 2.7011 -1.3 0968 0.0455 2.8 9974 2.8008 -1.2 1151 0.0561 2.9 9981 2.9005 -1.1 1357 0.0686 3.0 9987 3.0004 -1.0 1587 0.0833 3.1 9990 3.1003 -0.9 1841 0.1004 9993 3.2002 -0.8 2119 0.1202 9995 3.3001 -0.7 2420 0.1429 9997 3.4001 -0.6 2743 0.1687 9998 3.5001 -0.5 3085 0.1978 9998 3.6000 -0.4 3446 0.2304 9999 3.7000 -0.3 3821 0.2668 9999 3.8000 -0.2 4207 0.3069 1.0000 3.9000 -0.1 4602 IN 0.3509 1.0000 4.0000 5000 0.3989 8 0.0 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 4.0 Millennium Liquors is a wholesaler of sparkling wines. Their most popular product is the French Bete Noire which is shipped directly from France. Weekly demand is for 40 cases. Millennium purchases each case for $110, there is a $250 fixed cost for each order (independent of the quantity ordered) and their annual holding cost is 25 percent. a. What order quantity minimizes Millennium's annual ordering and holding costs? 194 cases b. If Millennium chooses to order 250 cases each time, what is the sum of their annual ordering and holding costs? $ 5,518 (Round your answer to 2 decimal places.) C. If Millennium chooses to order 75 cases each time, what is the sum of the ordering and holding costs incurred by each case sold? $ 3.83 d. If Millennium is restricted to order in multiples of 50 cases (e.g., 50, 100, 150, etc.) how many cases should they order to minimize their annual ordering and holding costs? 200 e. Millennium is offered a 5.00% discount if they purchase at least 1,000 cases. If they decide to take advantage of this discount, what is the sum of their annual ordering and holding costs? $ 7,840 per case cases

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