PLEASE HIGHLIGHT OR UNDERLINE WHAT GOES INTO THE FIRST TWO INCORRECT ANSWER BOX!

Problem 10-29 (Algorithmic) Floyd Distributors, Inc., provides a variety of auto parts to small local garages. Floyd purchases parts from manufacturers according to the EOQ model and then ships the parts from a regional warehouse direct to its customers. For a particular type of muffler, Floyd's EOQ analysis recommends orders with Q* = 30 to satisfy an annual demand of 220 mufflers. Floyd's has 250 working days per year, and the lead time averages 17 days. Note: Use Appendix B to identify the areas for the standard normal distribution. a. What is the reorder point if Floyd assumes a constant demand rate? If required, round your answer up to the nearest whole number. 12 x b. Suppose that an analysis of Floyd's muffler demand shows that the lead-time demand follows a normal probability distribution with u = 15 and o = 1.8. If Floyd's management can tolerate one stock-out per year, what is the revised reorder point? If required, round your answer up to the nearest whole number. 8 X C. What is the safety stock for part (b)? If Ch = $7/unit/year, what is the extra cost due to the uncertainty of demand? Safety Stock = 2 units Added Cost = $ 14 / year Feedback Check My Work Partially correct