Question: Problem 2. A product is stocked in a warehouse, where the average demand d - 200 per month with standard deviation of 50 units per

Problem 2. A product is stocked in a warehouse, where the average demand d - 200 per month with standard deviation of 50 units per month, the lead time LT -0.5 months. The product is valued at $75 per unit in the warehouse. The ordering cost is $50 per order and the inventory carrying cost is 1.5% per month. The Service level is set at 97% during the lead time. The out-of-stock cost per unit is $10. Assuming the manager in this warehouse is using EOQ and re-order point control policy. Question 2.1. What is the most economic order quantity for the warehouse? QUESTION Problem 2 Question 2.2. What is the safety stock that must be maintained in the warehouse? Problem 2. Question 2.3. What is the re-order point for the warehouse? QUESTIONS Problem 2 Question 2.4. As a result of adopting this policy, what is annual ordering cost for the warehouse? QUESTION 9 Problem 2 Question 2.5. As a result of adopting this policy, what is annual inventory carrying cost for regular inventory? Problem 2 Question 2.6. As a result of adopting this policy, what is annual inventory carrying cost for safety stock? QUESTION 11 Problem 2 Question 2.7. For out-of-stock caleulation, what is the E(2) for the service level required? (tip: ENORM DIST(2,0,1. FALSE, "NORMS DIST(-2, TRUE)). (keep at least 4 digit of precision after the decimal point, do not round if copled from Excel) QUESTION 12 Problem 2 Question 2.8. As a result of adopting this policy, what is the average number of products running out of stock each year? Problem 2. Question 2.9. As a result of adopting this policy, what is annual out-of-stock cost for the warehouse

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