Question 1 Bold Bodybuilders, Inc. is a large sporting goods store. It has become the exclusive...

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Question 1 Bold Bodybuilders, Inc. is a large sporting goods store. It has become the exclusive distributor of the new body building equipment called Geni. After carrying the equipment for a year, supply chain, decided to analyze the company's inventory policy for Geni. On the basis of the past year's record, Joe has identified the following weekly demand data: Weekly Demand 95 96 Occurrence, week 8 2 97 6 98 10 99 8 100 6 101 6 102 2 Joe Sabatini, a manager of 103 Total 4 52 The annual demand for Geni is considered to be 5,128 units, annual holding cost per equipment is $244, and ordering cost is $4,250 per order. The equipment price is $929 per unit. The new order is made when the inventory level in the store drops to a predetermined number of units on hand. Once the company orders Geni from the supplier, it will come to the store in about 3 weeks. Questions (Please fill in your answer using the enclosed Excel answer template) a) Explain briefly on how to calculate the mean and the standard deviation of weekly demand. b) What are the expected demand during lead time? What is the standard deviation of the demand during the lead time? Please explain your calculation briefly. c) What are the safety stock and reorder point that may guarantee with a probability of 97% that the store will not run out of stock of Geni equipment (97% service level) during the reordering. Explain how you reach the result. Question 1 Bold Bodybuilders, Inc. is a large sporting goods store. It has become the exclusive distributor of the new body building equipment called Geni. After carrying the equipment for a year, supply chain, decided to analyze the company's inventory policy for Geni. On the basis of the past year's record, Joe has identified the following weekly demand data: Weekly Demand 95 96 Occurrence, week 8 2 97 6 98 10 99 8 100 6 101 6 102 2 Joe Sabatini, a manager of 103 Total 4 52 The annual demand for Geni is considered to be 5,128 units, annual holding cost per equipment is $244, and ordering cost is $4,250 per order. The equipment price is $929 per unit. The new order is made when the inventory level in the store drops to a predetermined number of units on hand. Once the company orders Geni from the supplier, it will come to the store in about 3 weeks. Questions (Please fill in your answer using the enclosed Excel answer template) a) Explain briefly on how to calculate the mean and the standard deviation of weekly demand. b) What are the expected demand during lead time? What is the standard deviation of the demand during the lead time? Please explain your calculation briefly. c) What are the safety stock and reorder point that may guarantee with a probability of 97% that the store will not run out of stock of Geni equipment (97% service level) during the reordering. Explain how you reach the result.