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3. (12 points) Currently Ace Manufacturing orders a batch size of 750 for the 23A part that it uses in one of its assemblies. Ace
3. (12 points) Currently Ace Manufacturing orders a batch size of 750 for the 23A part that it uses in one of its assemblies. Ace is introducing some new product lines and wants to reduce the space allocated for storing inventory. Therefore, Ace is going to start ordering the 23A in batches of size 375. If demand for the 23A and the reorder point of the 23A do not change, how will the batch size change affect the likelihood of stocking out of the 23A over a year?
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