1. [5 pts] One of the examples in this chapter dealt with determining the optimal reorder point for a computer monitor sold by Millennium Computer Corp. Suppose that it costs MCC $0.30 per day in holding costs for each monitor in beginning inventory, and it costs $20 to place an order. Each monitor sold generates a profit of $45, and each lost sale results in an opportunity cost of $65 (including the lost profit of $45 and $20 in lost goodwill). Modify the spreadsheet shown in Figure 12.23 ( Figure 12.24 in the 8th edition) to determine the reorder point and order quantity that maximize the average profit associated with this monitor over a 3 week (21 day) planning horizon. (Note that the example in the book uses a 30 day planning horizon.) 2. [5 pts] Suppose a product must go through an assembly line made up of five sequential operations. The time it takes to complete each operation is normally distributed with a mean of 180 seconds and standard deviation of 5 seconds. Let X denote the cycle time for the line, so that after X seconds, each operation is supposed to be finished and ready to pass the product to the next operation in the assembly line. a. If the cycle time X = 180 seconds, what is the probability that all five operations will be completed? b. What cycle time (X) will ensure that all operations are finished 98% of the time? c. Suppose that the company wants all operations to be completed within 190 seconds 98% of the time. Further suppose that the standard deviation of the operations can be reduced at a cost of $5,000 per second of reduction (from 5) per machine and may be reduced as desired by up to 2.5 seconds. By how much should the standard deviations be reduced to achieve the desired performance level and how much would that cost? (Assume that the standard deviation is changed by the same amount on all machines.)