solution for these questions.

2. [25%] A small airport is considering whether it should provide jet fuel to airlines if required. To understand the possible demand, the airport surveyed its potential customers and compiled the following data: Weekly average jet fuel demand (u) 80 tons Weekly jet fuel demand standard deviation (0) 20 tons Holding cost $680/ton Order cost $35,500/order Lead time 3 weeks Working weeks per year 52 weeks The airport is interested to know what size of fuel holding tank to build, and so would like to know the best inventory strategy. (a) What is the expected jet fuel yearly average demand D? (b) Given D, find the order lot size Q that gives the economic order quantity (EOQ). (c) Given the EOQ, what is the total inventory holding cost? (d) Given the EOQ, what is the total inventory ordering cost? (e) Given the EOQ, what is the total annual inventory cost? (f) What is the time between orders in weeks? The airport is convinced that placing an order every season (every P = 13 weeks) will be best. (g) What is the protection period required by the proposed 13-week periodic review system? (h) The airport is required by the airlines to maintain a 99.75% service level. What is the required safety stock? Page 2 of 3 (i) Calculate the order size (Q) when using P = 13. (j) What is the total annual inventory cost for the P = 13 inventory system? (k) What is the target inventory level (T)? (1) If the airport decides to switch to the interval calculated in (f), safety stock will still be needed to cover uncertainty in demand. Calculate the required safety stock for the interval calculated in (f). (m) Which option should be chosen, P = 13 or the interval calculated in (f)? What is the difference in cost