Question: Problem 2 (5 points) Demand during lead-time for HP printers at a Sam's Club store is normally distributed, with a mean of 600 and a

Problem 2 (5 points) Demand during lead-time for

Problem 2 (5 points) Demand during lead-time for HP printers at a Sam's Club store is normally distributed, with a mean of 600 and a standard deviation of 200. The store manager continuously monitors inventory and orders 5,000 printers when the inventory drops to 1,000 printers. How much safety inventory does the store carry? What service level does Sam's club achieve as a result of this policy? Problem 3 (20 points) A company will begin stocking remote control devices. Expected monthly demand is 800 units. Ordering cost is $20 and annual holding cost is $2.40 per unit per year. The devices can be purchased from either supplier A or supplier B. Their price lists are as follows: Supplier A Supplier B Quantity Unit Price Quantity Unit Price 0-199 $ 14.00 0-149 $ 14.10 200-499 $ 13.80 150-349 $ 13.90 500+ $ 13.60 350+ $ 13.70 Which supplier and order size the company should use

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