An automotive warehouse stocks a variety of parts that are sold at the neighborhood stores. One

particular part, a popular brand of oil filter, is purchased by the warehouse for $$1\mathrm{.}5$ each. It is

estimated that the cost of order processing and receipt is $$100$ per order. The company uses an

inventory carrying charge based on a $28$ percent annual interest rate. The monthly demand for the

filter flows a normal distribution with mean $280$ and a standard deviation $77.$ Order lead time is

assumed to be five months. Assume that a filter is demanded when the warehouse is out of stock,

then the demand is back ordered, and the cost assessed for each back ordered demand is $$12\mathrm{.}80.$

Consider the function $G(Q,R)$ which gives the expected average annual cost of the policy $(Q,R)$ in a

continuous review inventory control system. For the problem given below design a spreadsheet to

compute $G(Q,R)$ for a range of values of $Q$EOQ and $R.$ Use the following approximation formula

for $L(z)=$exp$(-\mathrm{.}92-1\mathrm{.}19z-\mathrm{.}37z^2).$ Store the problem parameters $c,h,p,,$ and $$ in cell locations.

Visually search through the tabled values of $G(Q,R)$ to discover the minimum value and estimate the

optimal $(Q,R)$ values in this manner. Compare your results to the true optimal found from manual

calculation.