1. YSU store sells university coffee mugs. Daily demand is 23 mugs with a standard deviation of 4 mugs per day. Each mug costs $7.85. Ordering costs are $14. The carrying costs are $2 per year. The store is open 250 days per year. Lead time is 6 days with a standard deviation of 1.6 days. Desired service level is 98%.

use the z-table to find the corresponding z-value.

2. YSU store sells university logo hats. Daily demand is 21 hats with a standard deviation of 4 hats per day. Each hat costs $7.85. Ordering costs are $10. The carrying costs are $2 per year. The store is open 250 days per year. Lead time is 4 days with a standard deviation of 1.6 days. Desired service level is 98%.

Use the z-table to find the corresponding z-value.

Calculate the ROP with safety stock.