Q/ROP Model e ePaint Store stocks paint in its warehouse and sells it online on its website. The store cks several brands of paint; however, its biggest seller is Sharman-Wilson Ironcoat nt. Ironcoat paint has an estimated annual demand of 10,000 litres of paint, annual rying cost is 10% of the paint price, and ordering cost of $150 per order. The store erates 50 weeks in a year. The price of the paint is $7.5/ litre. Once an order is placed, it es about 5 weeks for the order to arrive. 1. What is the most economic order size? 2. Approximately, how many orders may be placed in a year? 3. What is the total ordering cost? 4. What is the total holding cost? 5. At what inventory level should the restaurant place an order? 6. What is the time between two orders (TBO) in terms of weeks? 7. Suppose that things have become uncertain and that customer demand is no more constant. Customer demand is now normally distributed with mean being the same as given in the problem description and standard deviation= 25 units per week. The supply source is still very reliable and as a result the lead time is almost constant. Find out the safety stock needed to achieve 97.5% customer service level. 8. What is the new reorder point? 9. Now, suppose that customer demand is constant as given in the problem, but lead time is variable. Assume that the lead time is normally distributed with a mean of 5 weeks and standard deviation of 2 weeks. Find out the safety stock needed to achieve 97.5% customer service level. 10. Finally, assume that both, lead time and customer demand are variable. Use the data given in the previous questions above. Find out the safety stock needed to achieve 97.5% customer service level. 11. Now lets suppose you get a discount of $0.05 if you buy 5000 litres or more in a single order. Find the EOQ for the new price. Is the EOQ feasible? 12. Would you take the discount? 13. Now lets suppose you get a discount of $0.05 if you buy 4000 litres or more in a single order (instead of 5000 litres or more as in the previous scenario). What should be your order size? POQ Model Food Place Market stocks frozen pizzas in a refrigerated display case. The average daily demand for the pizzas is normally distributed, with a mean of 8 pizzas and a standard deviation of 2.5 pizzas. The cost of placing one order is about $45. The annual cost of holding one unit in inventory is $2 and annual demand for 365 days is 2,920 . A vendor for a packaged food distributor checks the market's inventory of frozen foods every 10 days. 1) During a particular visit there were no pizzas in stock. The lead time to receive an order is three days. Determine the order size for this order period that will result in a 98% service level. 2) How much of it is safety stock? 3) During the vendor's following visit there were 5 frozen pizzas in stock. What is the order size for the next order period