Problem 2: (Inventory Analysis) [20 points total] Case inventory questions --- use the chart below: $140,000 $120,000 $100,000 . $80,000 Total Inventory Investment $60,000 O $40,000 Qio QO $20,000 SO 20% 30 % 40% 50% 90 % 100% 60% 70 % 80 % Fill Rate Fill Rate 34 Orders/21 days Fill Rate 8 Orders/21 days Fill Rate 17 Orders/21 days Actual Predicted 1. What is actual inventory and service level? (2 points) 2. If the order frequency is 8 orders in 21 days, is the current actual for inventory and service level optimal? Why or why not? (4 points) 3. Name two optimal points (service level, inventory $$) on the curve representing an order frequency of 8 orders in 21 days. (2 points) 4. If inventory for this business was very expensive and capacity was very cheap, what point (inventory $$, service level) on the curve representing 8 orders in 21 days would you choose if customers demanded quick deliveries? Please provide rationale for your decision (2 points)