Question: Problem 3 . 2 . ( 2 6 points ) A puzzle store, Wang's Wizard Wheezes ( WWW ) , has different varieties of brain

Problem 3.
2.(26 points) A puzzle store, Wang's Wizard Wheezes (WWW), has different varieties of brain-teasers and jigsaw puzzles. One particular puzzle, Impossible, sells for $25 each,and it costs $15 to purchase it from a designer. There is a $50 replenishment cost per order. A backorder results in the loss-of-goodwill with an estimated cost of $40 per puzzle. You can assume the unmet demand is backlogged. There is a 3-month lead time and an inventory carrying charge of 15% annual interest rate. The monthly demand for Impossible puzzle follows a. normal distribution with mean 300 and standard deviation 81. Justice Shelton,CEO of WWW,uses (Q,R) policy for ordering inventory.
a) Find RO?
b) Find Q1 and R1?

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