Question: Please solve all questions of this problem steps by steps. Please show me your calculations of the answers. Please do not use any excel spreadsheets.

Please solve all questions of this problem steps by steps. Please show me your calculations of the answers. Please do not use any excel spreadsheets. I will high rate your work. Thanks a lot.

Please solve all questions of this problem stepsPlease solve all questions of this problem steps
Problem 2: Safety Stock Current Mode Mix Proposed Mode Mix Average transit time (days) 15 Std. deviation of transit time (days) 5 2 Demand per day (units) 1500 1500 Service level 84.14% 93.42% Net cost per unit $100 $100 Inventory carrying cost 30% 30% Price per unit $150 $150 Cost of capital 16% 16% * early deliveries have the same impact on safety stocks as late deliveries5. What is the difference in units of safety stock inventory between the current mode mix and the proposed mode mix? a. 2,970 b. 8,080 c. 4,635 d. none of the above 6. The formula used to calculate the answer to Question 5 resulted in the difference in safety stock units (standard deviation of transit time). Calculate the safety stock inventory carrying cost reduction by using the proposed mode. Now calculate the demand (cycle stock) inventory carrying cost reduction by using the proposed mode. Combining the safety stock inventory cost reduction with the demand inventory carrying cost reduction results in a total annual inventory carrying cost dollar reduction of: a. $454,050.00 b. $511,650.00 c. $449,100.00 d. none of the above 7. The proposed mode mix has a freight expense premium of 16% based on the total inventory value of the difference in total inventory (demand inventory plus safety stock inventory) between the two mode alternatives. What is the total net cash flow savings from using the proposed mode mix? a. $209,580.00 b. $238,770.00 c. $231,840.00 d. none of the above 8. If the average transit time for the proposed mode mix increases to 9 days, with the standard deviation of transit time staying at 2 days, what happens to the units of safety stock reduction compared to the answer you found in Question 5? a. it increases b. it decreases c. nothing - it stays the same d. can't be determined

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