Answer choices for Q1 are 34, 57, 59, 87, 92,109.

Answer choices for R1 are 101, 116, 121, 141, 154, 158.

Answer choices for Safety Stock are 3, 4, 8, 10, 15, 21.

Answer choices for Type 1 are 0.3694, 0.7785, 0.7881, 0.8512, 0.8845, 0.9312.

Answer choices for Type 2 are 0.6987, 0.7784, 0.8541, 0.9012, 0.9312, 0.9823.

Harvey sells a high-end espresso machine, an expensive and bulky item. For this reason, Harvey attaches a very high holding cost of $60 per year to each machine. Harvey sells about 300 of these yearly, and estimates the variance of yearly demand to be 50. Annual demand follows a normal distribution. Since customers are willing to wait for the machine when he is out of stock, the shortage penalty is low. He estimates the shortage penalty to be $30 per unit. Order lead time is three months. The fixed ordering cost is $100. Determine the following: a. The lot size and the reorder point, using the iteration approach. Start with Q0=EOQ. What are the values Harvey sells a high-end espresso machine, an expensive and bulky item. For this reason, Harvey attaches a very high holding cost of $60 per year to each machine. Harvey sells about 300 of these yearly, and estimates the variance of yearly demand to be 50. Annual demand follows a normal distribution. Since customers are willing to wait for the machine when he is out of stock, the shortage penalty is low. He estimates the shortage penalty to be $30 per unit. Order lead time is three months. The fixed ordering cost is $100. Determine the following: a. The lot size and the reorder point, using the iteration approach. Start with Q0=EOQ. What are the values