Problem 20-30 (Algo) It is your responsibility, as the new head of the automotive section of...

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Problem 20-30 (Algo) It is your responsibility, as the new head of the automotive section of Nichols Department Store, to ensure that reorder quantities for the various items have been correctly established. You decide to test one item and choose Michelin tires, XW size 185 14 BSW. A perpetual inventory system has been used, so you examine this, as well as other records, and come up with the following data: Cost per tire $ 35 each Holding cost Demand 25 percent of tire cost per year 1,260 per year Ordering cost $ 36 per order Standard deviation of daily demand Delivery lead time 3 tires 4 days Because customers generally do not wait for tires but go elsewhere, you decide on a service probability of 99 percent. Assume the demand occurs 365 days per year. a. Determine the order quantity. (Round your answer to the nearest whole number.) Order quantity tires b. Determine the reorder point. (Use Excel's NORMSINV() function to find the correct critical value for the given a-level. Do not round intermediate calculations. Round "z" value to 2 decimal places and final answer to the nearest whole number.) Reorder point tires Problem 20-30 (Algo) It is your responsibility, as the new head of the automotive section of Nichols Department Store, to ensure that reorder quantities for the various items have been correctly established. You decide to test one item and choose Michelin tires, XW size 185 14 BSW. A perpetual inventory system has been used, so you examine this, as well as other records, and come up with the following data: Cost per tire $ 35 each Holding cost Demand 25 percent of tire cost per year 1,260 per year Ordering cost $ 36 per order Standard deviation of daily demand Delivery lead time 3 tires 4 days Because customers generally do not wait for tires but go elsewhere, you decide on a service probability of 99 percent. Assume the demand occurs 365 days per year. a. Determine the order quantity. (Round your answer to the nearest whole number.) Order quantity tires b. Determine the reorder point. (Use Excel's NORMSINV() function to find the correct critical value for the given a-level. Do not round intermediate calculations. Round "z" value to 2 decimal places and final answer to the nearest whole number.) Reorder point tires