Question: Question 4 20 pts You are serving as an inventory consultant for the Volume II Bookstore, and they are interested in an inventory policy for

Question 4 20 pts You are serving as an inventory
Question 4 20 pts You are serving as an inventory consultant for the Volume II Bookstore, and they are interested in an inventory policy for a popular type of Hokie mechanical pencil. Weekly demand for the Hokie Mechanical pencil is normally distributed with a mean of 18 and a standard deviation of 4. The store purchases the pencils for $8.50 and sells them for $11.75. The store accountant estimates an order cost of $35 per order and a 28% annual interest rate for inventory holding costs. The supplier provides the pencils in a 3 week lead time. The accountant estimates a penalty cost of $6.00 per pencil when they are not available, but they are having difficulty estimating the stockout costs. Assume 52 weeks per year. Assume that you evaluate a proposed Type I service level of 92%. Find the optimal order quantity (Q), reorder point (R), safety stock (s), and imputed shortage cost (p). Order Quantity (Q) - round to nearest integer - Reorder Point (R) - round up to next integer - Safety stock (s) - round up to next integer - Imputed shortage cost (p) - omit dollar sign please

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