Problem 11-30 (Static) It is your responsibility, as the new head of the automotive section of Nichols Department Store, to ensure that reorder quantities for the various items have been correctly established. You decide to test one item and choose Michelin tires, XW size 185 x 14 BSW. A perpetual inventory system has been used, so you examine this as well as other records and come up with the following data: Cost per tire Holding cost Demand Ordering cost Standard deviation of daily demand Delivery lead time $ 35 each 20 percent of tire cost per year 1,000 per year $ 20 per order 3 tires 4 days Because customers generally do not wait for tires but go elsewhere, you decide on a service probability of 98 percent. Assume the demand occurs 365 days per year. a. Determine the order quantity. (Round your answer to the nearest whole number.) Order quantity tires b. Determine the reorder point. (Use Excel's NORM.S.INV() function to find the z value. Round z value to 2 decimal places and final answer to the nearest whole number.) Reorder point tires Problem 11-39 (Static) CU, Incorporated (CUI) produces copper contacts that it uses in switches and relays. CUI needs to determine the order quantity, Q, to meet the annual demand at the lowest cost. The price of copper depends on the quantity ordered. Here are price-break and other data for the problem: Price of copper $ 0.82 per pound up to 2,499 pounds $ 0.81 per pound for orders between 2,500 and 5,000 pounds S 0.80 per pound for orders greater than 5,000 pounds 50,000 pounds per year 20 percent per unit per year of the price of the copper $ 30 Annual demand Holding cost Ordering cost Which quantity should be ordered? Quantity units