Problem $2.(6$S points$)(s,Q)$ Inventory Model Eagle Tech sells its new generation of high$-$tech glasses and

experiences an average monthly demand of $2000$ units with a monthly standard deviation of $400$ units.

The lead time for replenishment is $2$ weeks, and the company operates $4$ weeks a month and $48$ weeks a

year. The cost to place an order is $$100$ for the delivery. The administrative cost of ordering is as low as

$$10$ thanks to an online ordering system. The cost of a pair of high$-$tech glasses is $$250$ and the annualized

WACC $($weighted average cost of capital$)$ for Eagle Tech is $30\%.$ Eagle Tech uses the $(s,0)$ inventory model

to manage its high$-$tech glasses inventory and determines the order quantity for each order placed

according to EOQ.

a$)[2$ points$)$ What is the value of the annual flow rate of AURealm, i$.$e$.,R?$

b$)[1\mathrm{.}5$ points$)$ What is the value of the setup cost per order for AURealm, i$.$e$.,K?$

c$)[1\mathrm{.}5$ points$)$ What is the value of the holding cost per widget per year, i$.$e$.,h?$

d$)[$S points$]$ How many pairs of high$-$tech glasses should Eagle Tech order every time it places an order,

i$.$e$.,$ EOQ$=\sqrt[\phantom{2}]{\frac{2K}{}}?$

e$)(20$ points$)$ If Eagle Tech wants to maintain a service level $($SL$)$ of $98\%,$ i$.$e$,),$ which means

it wants to have enough irventary to meet demand $98\%$ of the time right before an order arrives,

what would be the inventory level that Eagle Tech should issue an order, i$.$e$.,s={}_L+z_{SL}**{}_L?$

f$][10$ points$]$ Based on your result in part $b,$ what is the level of pipeline inwentory, i$.$e$,$ average inventory

on the truck, ${}_2?$

g$)(10$ points$)$ Based on your result in part b$,$ what is the level of safety stock, ie$.,SS=z_{SL}**{}_L?$

h$)(15$ points$)$ What is the total annual cost per year in managing the imventory of high$-$tech glasses, ie$.,$

$\frac{}{Q}+h(s+\frac{q}{2})+cR?$