Question: PROBLEM - 2 . ( 6 0 Pts ) WSX Automobile Spare Parts Store uses a ( ( mathrm { Q } ,
PROBLEM Pts WSX Automobile Spare Parts Store uses a mathrmQmathrmR inventory system to control its stock levels. For a special "brake disc", historical data show that the distribution of monthly demand is approximately normal, with mean and standard deviation Replenishment lead time for this paint is about weeks. Each can of paint costs the store TL Although excess demands are backordered, the store owner estimates that unfilled demands cost about TL each in bookkeeping and lossofgoodwill costs. Fixed costs of replenishment are TL per order, and holding costs are based on a percent annual rate of interest.
a What are the optimal lot sizes and reorder points for this brand of paint? mathbf Pts
b What is the optimal safety stock for this paint? Pts
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