Question: Question 10 (8 points) Hal's Hardware needs to regularly place orders for 40 pound bags of water softener salt. Hal recently took a class at

Question 10 (8 points) Hal's Hardware needs to
Question 10 (8 points) Hal's Hardware needs to regularly place orders for 40 pound bags of water softener salt. Hal recently took a class at the local university and discovered how to minimize total inventory costs while supporting customer service levels. A) Hal wants to order salt at fixed time periods while minimizing total costs. Order costs are $27 per order, holding costs are $1.50 per bag per year, and annual demand is 31,025. What should be Hal's fixed review period (RP) to come close to minimizing total inventory costs? SHOW ALL WORK. (3 points) B) Hal wants to maintain an 85% service level for his customers. Average daily demand is 85 bags. The lead time to receive an order is 3 days. The standard deviation of demand for (RP + L) is 50 bags. What is Hal's target inventory (TI) level? SHOW ALL WORK. (3 points) C) It is time to place an order. Hal has 145 bags on hand. How many bags should Hal order? SHOW ALL WORK. (2 points)

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