Using the data presented in the case, identify the inventory parameters for this manufacturer. Specifically, quantify the following parameters and, if needed, explain your reasoning$/$assumptions for parts A$7$X$32$Y and TD$674$G$4$

Order cost: this is the fixed$/$set$-$up ordering cost per order.

Holding cost $($make sure to take note of the time unit$)$: this is the "unit" inventory holding cost. Note that in this case opportunity cost of tied$-$up capital, insurance, as well as obsolescence contribute to the inventory holding cost.

Average weekly demand

The standard deviation of weekly demand

Service level

What is your hypothesis on the distribution of weekly demand? Would normal distribution be reasonable here?

Calculate the optimal order quantity. Notice that even though demand is variable, you may calculate the EOQ value with average demand and find the optimal order quantity. How does this order quantity compare to the current order quantities?

Assuming normal demand distribution for both parts, calculate the safety stock levels for both parts A$7$X$32$Y and TD$674$G$4$ with a service level that you quantified in Question $1$e

Evaluate the effectiveness of Airflow$$s spare$-$part inventory control system. What changes would you recommend?