Question: PROBLEM - 2 . ( 6 0 Pts ) WSX Automobile Spare Parts Store uses a ( ( mathrm { Q } ,

PROBLEM-2.(60 Pts) WSX Automobile Spare Parts Store uses a \((\mathrm{Q},\mathrm{R})\) 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 14 and standard deviation 4. Replenishment lead time for this paint is about 10 weeks. Each can of paint costs the store TL6. Although excess demands are back-ordered, the store owner estimates that unfilled demands cost about TL10 each in bookkeeping and loss-of-goodwill costs. Fixed costs of replenishment are TL15 per order, and holding costs are based on a 30 percent annual rate of interest.
a. What are the optimal lot sizes and reorder points for this brand of paint? (\(\mathbf{35}\) Pts)
b. What is the optimal safety stock for this paint? (25 Pts)
PROBLEM - 2 . ( 6 0 Pts ) WSX Automobile Spare

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