Question 1: (Q, R) (25 points) An electronic device retail shop buys and sells Bluetooth speakers. The annual demand for speakers is normally distributed with mean 6,000 and standard deviation 500. A speaker costs $100 to the shop and the annual interest rate is 25%. The shop pays $10,000 for each order placed and an order arrives in 8 weeks. Any demand that is not satisfied on time is fully backordered and the penalty cost incurred by not satisfying a customer demand on time is estimated to be $40. (Assume a year has 52 weeks.) a. [10 points] The electronic device retail shop applies (Q, R) control policy for Bluetooth speakers where Type I service level is 95%. Calculate the order quantity, reorder point, and safety stock where Type I service level is 95%. b. [5 points] Find the Type II service level when the policy in part (a) is applied. c. [10 points] What is the expected number of shortages per order cycle when the policy in part (a) is applied. Question 1: (Q, R) (25 points) An electronic device retail shop buys and sells Bluetooth speakers. The annual demand for speakers is normally distributed with mean 6,000 and standard deviation 500. A speaker costs $100 to the shop and the annual interest rate is 25%. The shop pays $10,000 for each order placed and an order arrives in 8 weeks. Any demand that is not satisfied on time is fully backordered and the penalty cost incurred by not satisfying a customer demand on time is estimated to be $40. (Assume a year has 52 weeks.) a. [10 points] The electronic device retail shop applies (Q, R) control policy for Bluetooth speakers where Type I service level is 95%. Calculate the order quantity, reorder point, and safety stock where Type I service level is 95%. b. [5 points] Find the Type II service level when the policy in part (a) is applied. c. [10 points] What is the expected number of shortages per order cycle when the policy in part (a) is applied