Question 1 5 points Save Answer 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, MC300. A fixed quantity inventory system has been used, so you examine this, as well as other recoxds, and come up with the following data. Because customers generally do not wait for tires but go elsewhere, you decide on a service probability of 98 percent (assume a z-score of 2.3). Assume the demand occurs 365 days per year. Determine the order quantity and the reorder point. Cost per tire $35 each Holding cost 20 percent of tire cost per year Demand 1,000 per year Ordering cost $20 per order Standard deviation of daily demand 3 tires Delivery lead time 4 days For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). TTT Arial 3 (121) T.EE