Question: Problem 2. The demand for a product in a warehouse follows a normal distribution, and its mean is 800 per month and its standard deviation

Problem 2. The demand for a product in a warehouse follows a normal distribution, and its mean is 800 per month and its standard deviation is 100 units per month. The lead time is 0.5 month. The product is valued as $60 per unit in the warehouse. The ordering cost is $100 and the inventory carrying cost is set at 2% per month. A Service level of 95% is required during the lead time. The out-of-stock cost per unit is $10. Assuming the manager in this warehouse is using EOQ with Re-Order point control policy. The following 12 questions are for problem 2. Question 2.1. What is the best order quantity for the warehouse?

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