Question: please show work and answers clearly. Problem 3) A retail company has determined that demand for a purchased item averages 120 units per week with

please show work and answers clearly.
please show work and answers clearly. Problem 3)
Problem 3) A retail company has determined that demand for a purchased item averages 120 units per week with a standard deviation of weekly demand equal to 38.5 units. The purchasing lead-time is 3 weeks. Answer the following questions assuming the company is willing to accept a stockout risk of no more than 3.5% (0350). 12 points N Appendix B, Table B from Textbook .00 .01 .02 .03 1.5 .9332 9345 9357 .9370 1.6 .9452 9463 9474 .9484 1.7 .9554 9564 .9573 .9582 1.8 .9641 9649 9656 .9664 1.9 .9713 .9719 .9726 .9732 2.0 9772 9778 .9783 9788 .04 .05 9382 9394 .94957 9505 9591 .9599 .9671 .9678 .9738 9744 .9793 .9798 .06 .9406 .9515 .9608 .9686 .9750 .9803 .07 .9418 .9525 .9616 .9693 9756 9808 .08 9429 .9535 .9625 .9699 .9761 9812 .09 .9441 9545 .9633 .9706 .9767 9817 - a. What is the acceptable stockout risk? What is the required service level? What z value should be used? b. How much safety stock should he held? Show your work using the Microsoft Word equation editor or by typing to the right of the equation without using the equation editor. Round your answer up to an integer value if you calculate a fractional value. Safety Stock = 20 VLT = c. What reorder point should be used? Show your work using the Microsoft Word equation editor or by typing to the right of the equation without using the equation editor. Round your answer up to an integer value if you calculate a fractional value. ROP = (x LT) + zoqVLT =

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