Service level $=99\%$

$z=2\mathrm{.}32$

$[$C$]$ Alice opens an aquarium store in a lively shopping mall and finds business booming, but she often stocks out of key items customers want. She decides to experiment with inventory$-$control methods such as using fixed$-$order quantity $($FQS$)$ and$/$or fixed$-$order period $($FPS$)$ systems. The FLUVAL $303$ Pump, a high margin and profitable pump, is one of her best sellers, but it stocks out frequently. You collect the following data with respect to this pump's sales.

Demand $=$ five units week

Order cost $=$$$\frac{40}{o}$rder

Item cost $=$$$\frac{80}{p}$ump

Inventory$-$holding cost $=15$

percent year

Store open $50$ weeks$/$year

Lead$-$time $=$ three weeks

Std$.$ deviation in weekly

demand $=6$

Service level $=96$ percent

$]=[8$ points

C$1.$ What is the inventorycarrying $($holding$)$ cost per pump per year?

C$2.$ What is the economic order quantity?

C$3.$ What is the average number of orders per year if using the EOQ?

C$4.$ What is the reorder point without safety stock?

$\backslash$table$[[\backslash$table$[[$C$5.$ What is the standard$],[$deviation of demand during$],[$the lead time?$],[q,{}_L={}_{t}VL$