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8. [15 points] Weekly demand for air conditioner compressors at an appliance manufacturer in the USA is normally distributed, with a mean of 1,000 units

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8. [15 points] Weekly demand for air conditioner compressors at an appliance manufacturer in the USA is normally distributed, with a mean of 1,000 units and a standard deviation of 300. Compressors are imported from China and each compressor costs $200. The supplier takes 6 weeks to supply an order. A domestic US supplier has offered to deliver compressors with a lead time of 2 weeks with a cost of $225 per unit. The appliance manufacturer is targeting a CSL of 95% and monitors its inventory continuously. The manufacturer incurs a holding cost of 20% per year. Should the manufacturer accept the US supplier's offer? Why or why not? If the CSL increases to 99%, does your decision change? Show all calculations to earn credit

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