QUESTION 1 Daily demand for an air-conditioning split unit is normally distributed with a mean of 60 and standard deviation of 7. The source of supply is reliable and maintains a constant lead time of six days once the inventory replenishment is ordered by a Fixed Order Quantity Method. The cost of placing the order is AED 1000 and annual holding costs are AED 100 per unit. There are no stockout costs, and unfilled orders are filled as soon as the order arrives. Assume sales occur over the entire 365 days of the year. (a) Compute the following values to satisfy a 90 percent probability of not stocking out during the lead time. The order quantity units The reorder point units units (b) Safety stock to meet the 90% service level requirements Note: Please type in only your final numerical answer in the blanks. QUESTION 2 Daily demand for a breakfast cereal is 10 units with a standard deviation of 3 units. The grocery store stocking the cereal follows a Fixed-Time Period Inventory Method. The review period is 30 days, and lead time is 14 days. Management has set a policy of satisfying 90 percent of demand from items in stock. At the beginning of this review period, there are 150 units in inventory. (a) How many units should be ordered? units units (b) What is the safety stock to meet the 90% service level requirements? Note: Please type in only your final numerical answer in the blanks. Save All Click Save and Submit to save and submit. Click Save All Answers to save all answers. MacBook Pro