Question: Question 3 (5 points) Saved Brenda opens a pool and spa store in a lively shopping mall and finds business to be booming, but she

Question 3 (5 points) Saved Brenda opens a pool
Question 3 (5 points) Saved Brenda opens a pool and spa store in a lively shopping mall and finds business to be booming, but she often stocks out of key items customers want. She decides to experiment with inventory control methods such as using a fixed order quantity (FQS) and/or fixed order period (FPS) systems. The 28-ounce bottle of Super Algaecide (SA) is a high margin stock keeping unit (SKU), but it stocks out frequently. Ten SA bottles come in each box, and she orders boxes from a vendor 160 miles away. Brenda is busy running the store and seldom has time to review store inventory status and order the right quantity at the right time. She collects the following data with respect to these SA sales. Demand - 10 boxes per week Store operates 50 weeks/year Order cost-$40/order Lead time - 3 weeks Item cost-$80/box Std. deviation in weekly demand - 6 Inventory-holding cost 15% per year Service level - 96%, Z-1.75069 The reorder point for Super Algaecide (SA) with safety stock is more than 40 but less than or equal to 50 boxes o less than 20 boxes O more than 20 but less than or equal to 30 boxes more than 30 but less than or equal to 40 boxes None of the options apply

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