1.How much is the total expected annual cost of being out of stock if the ROP is at 30 units (30units + 0 safety stocks) per year?

2.How much is the total annual cost (expected annual cost of being out of stock + annual carrying cost) if the ROP is at 35 units (30 units + 5 safety stocks) per year?

3. How much is the total annual cost (expected annual cost of being out of stock + annual carrying cost) if the ROP is at 36 units (30 units + 6 safety stocks) per year?

4. How much is the total expected annual cost of being out of stock if the ROP is at 36 units (30units + 6 safety stocks) per year?

5. How much is the total annual cost (expected annual cost of being out of stock + annual carrying cost) if the ROP is at 32 units (30units + 2 safety stocks) per year?

Ben's Muffler Repair advertises that it is able to replace a car muffler on the same day a customer brings a car into the shop. If for any reason Ben cannot keep this promise, he pays the customer 100 dollars. Ben has found that for LN-70 mufflers, the optimal reorder quantity is 30 mufflers; he orders LN-70 mufflers 10 times a year. As LN-70 mufflers have to be ordered from a manufacturer located a considerable distance away, lead time for his orders is 30 working days, a period of time in which Ben on the average sells 30 LN-70 mufflers. During the past 10 years, 100 orders were placed. There were 10 occasions when Ben sold 32 LN-70s, 5 occasions when he sold 35, and only 1 when he sold 36 during the 30-day order period. On each of the other 84 occasions, he sold 30 or fewer. It costs Ben 18 dollars a year to hold one LN-70 in safety stock. Ben's Muffler Repair advertises that it is able to replace a car muffler on the same day a customer brings a car into the shop. If for any reason Ben cannot keep this promise, he pays the customer 100 dollars. Ben has found that for LN-70 mufflers, the optimal reorder quantity is 30 mufflers; he orders LN-70 mufflers 10 times a year. As LN-70 mufflers have to be ordered from a manufacturer located a considerable distance away, lead time for his orders is 30 working days, a period of time in which Ben on the average sells 30 LN-70 mufflers. During the past 10 years, 100 orders were placed. There were 10 occasions when Ben sold 32 LN-70s, 5 occasions when he sold 35, and only 1 when he sold 36 during the 30-day order period. On each of the other 84 occasions, he sold 30 or fewer. It costs Ben 18 dollars a year to hold one LN-70 in safety stock