Q8: Part A) Dunstreet's Department Store would like to develop an inventory ordenng policy of a 95 percent probability of not stocking out. To illustrate your recommended procedure, use as an example the ordering policy for white percale sheets. Demand for white percale sheets is 5,000 per year. The store is open 365 days per year. Every two weeks (14 days) inventory is counted and a new order is placed. It takes 10 days for the sheets to be delivered. Standard deviation of demand for the sheets is five per day. There are currently 150 sheets on hand. How many sheets should you order? Hint: Review solved problem 11.5 on page 373 of the textbook for possible guidanen. Part B) Given the following information, formulate an inventory management The item is demanded 50 weeks a vear. a. State the order quantity and reorder point. b. Determine the annual holding and order costs. c. If a price break of $50 per order was offered for purchase quantities of over 2 take advantage of it? How much would you save annually? Resistors for clectronic circuits are manufactured on a high-speed automated machine. The machine is set up to produce a large run of resistors of 1,000 ohms each. To set up the machine and to create a control chart to be used throughout the run, 15 samples were taken with four resistors in each sample. The complete list of samples and their mom values are as follows: Develop an X-chart and an R-chart and plot the values. From the charts, what comments can you make about the process? (Use three-sigma control limits as in Exhibit 10.13.) Part B) Ray's Satellite Emporium wishes to determine the best order size for its best-selling satellite dish (model TS111). Ray has estimated the annual demand for this model at 1,000 units. His cost to carry one unit is $100 per year per unit, and he has estimated that each order costs $25 to place. Using the EOQ model, how many should Ray order cach time