Question: Q1. Given below is data on a company's annual demand, inventory related costs, lead time and service level. (20 points) Demand: 20,000 units/year Ordering Cost:

Q1. Given below is data on a company's annual demand, inventory related costs, lead time and service level. (20 points) Demand: 20,000 units/year Ordering Cost: $40/order Holding Cost: $2/unit/year Lead Time: 2 weeks Cycle service level: 95% Demand is normally distributed with a standard deviation of weekly demand of 100 units. Current on hand inventory is 1040 units with no scheduled receipts and no backorders. a. Calculate the EOQ. What is the average time between orders in weeks? b. What is the safety stock and reorder point that provide a 95 % service level? c. What is the annual cost of (1) holding the inventory and (ii) placing orders? d. A withdrawal of 15 units has just occurred. Is it time to re-order? If so, how much should be ordered

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