Question: Please help with a and b! You have an average demand of 80 units per day with a standard deviation of 15 per day. Your

Please help with a and b! You have an average demand

Please help with a and b!

You have an average demand of 80 units per day with a standard deviation of 15 per day. Your average lead time is 3 days with a standard deviation of 0.5 days. The product costs you $120 each, delivery included. Ordering costs you $135, and you estimate your inventory carrying cost at 20%. You operate at a 95% service level. Your cost of lost sale includes an expedited order, thus costing $280 for each unit not in stock. [A] From this information, create a Reorder Point Plan based upon Q= DDLT. (8 points) [B] What is the total annual cost of the plan? (12 points). Assume 360 days a year

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