1. SCM 460-Purchasing & Material Management HW #5 on Inventory Management Lieutenant Commander Data is planning to make his monthly (every 30 days) trek to Gamma Hydra City to pick up a supply of isolinear chips. The trip will take Data about two days. Before he leaves, he calls in the order to the GHC Supply Store. He uses chips at an average rate of five per day (seven days per week) with a standard deviation of demand of one per day. He needs a 98 percent service probability. If he currently has 35 chips in inventory, how many should he order? What is the most he will ever have to order? NAME YOUR EXCEL SHEET AS-Sheet #1. Provide answers in Canvas. Round the values. 2. It is your responsibility, as the new head of the automotive section of Nichols Department Store, to ensure that reorder quantities for the various items have been correctly established. You decide to test one item and choose Michelin tires, XW size 185 x 14 BSW. A perpetual inventory system has been used, so you examine this as well as other records and come up with the following data: Cost per tire Holding cost Demand $35 each 20 percent of tire cost per year 1,000 per year Ordering cost $20 per order Standard deviation of daily demand 3 tires Delivery lead time 4 days Because customers generally do not wait for tires but go elsewhere, you decide on a service probability of 98 percent. Assume the demand occurs 365 days per year. a. b. 3. Determine the optimal order quantity. Determine the reorder point. NAME YOUR EXCEL SHEET AS -Sheet # 2. Provide answers in Canvas. Round the values. Dunstreet's Department Store would like to develop an inventory ordering policy with a 95 percent probability of not stocking out. To illustrate your recommended procedure, use as an example the ordering policy for white percale sheets. Demand for white percale sheets is 3,400 per year. The store is open 365 days per year. Every two weeks (14 days) inventory is counted and a new order is placed. It takes 9 days for the sheets to be delivered. Standard deviation of demand for the sheets is seven per day. There are currently 120 sheets on hand. How many sheets should you order? NAME YOUR EXCEL SHEET AS-Sheet# 3. Provide answers in Canvas. Round the values.