URGENT!! How to do Question 1 and Question 2? Please explain as well.

EXHIBIT 1 Formulas for calculating reorder points and quantities. Delivery delay =AverageleadtimeMaximumleadtimeAverageleadtime Safety allowance = Usage Average lead time .8 Delivery delay Order point = Usage Average lead time + Safety allowance EOQ =0.28Unitcost24.36Dailyusage365 Line point = Daily usage 7+ Order point Quantity to order = (Order point) (Quantity on order) (Quantity on hand) + Quantity allocated +EOQ Note: The line point is used to generate orders for all items in a line which are within one week of their order points. These orders may be used to meet truckload minimums or purchase discount minimums. history for a typical item is shown in Appendix 1. Exhibit 1. The EOQ formula utilizes a carrying cost of 28 percent and an ordering cost of $4.36 per order placed. These figures were based on past cost history at the company. customer-service objectives of the business. Would they take advantage of truckload lots or purchase discounts whenever appropriate, and would the formulas result in reasonable inventory levels? Discussion Questions 1. Review the demand data provided in Appendix 1. Describe any patterns, outliers, or unusual customers that you see represented in the data. 2. Plot the frequency distribution for demand of the item in Appendix 1 and draw conclusions from what you observe. 3. Is a P System or a Q System more appropriate for this item? Explain. What formulas are needed for your suggested system, and how do they compare to the formulas currently being used? 4. Design an inventory control system for this business, based on your suggestion in question 3 . 5. What customer-service objectives are reasonable for this business