PLEASE SHOW WORK!!!

P301 - Problem 10 A Pete's Premium Printing business operates 245 days a year. The company uses a lot of paper in its daily operations. The table below provides relevant demand and cost information. Using this information answer the 3 questions below. Inventory Information for Shower Cleanser The Cost of a Case of Paper $25.00 Annual Holding Cost (as a % of Cost) 12% H = $25*.12 = $3.00 Cost to place an Order $12.00 Average Daily Demand (in cases) D = 400*245 = 98000 Standard deviation of Daily demand 75 Lead time to receive an order (in days) 10 400 1. If the company wanted a 90% Customer Service Level how much safety stock would it need to carry? 2. Based on a 90% CSL, what would the Reorder Point be for paper? 3. Assume the company's order quantity (Q) was 885. How many stock outs would it experience in a year