Areas of Cumulative Standard Formulae Normal Distribution 2 = # + 20 TC = DC + - 25 + Q -P 7 = H = ic Cu Prob = F(Q) = Cot Cu 2DS Z G (Z) Z G (Z) Z G (Z) Q = H Cu = p - c -3.00 0.00135 -1.00 0.15866 1.00 0.84134 Co=C-V -2.95 0.00159 -095 0.17106 1.05 0.85314 2D 0.00187 -090 0.18406 1.10 |0.86433 R = dL + zo Q = 0.00256 -0.80 |0. 0.88493 h = ic UTIL = V(T + L)o= R = dl + zo; = dl + $5 q = d(T + L) + 207+1 - 1 71 = Lob Cost of Goods Sold Inventory Turn = AHC = (3)h Value of Inventory AOC = ()S Value of Inventory Weeks of Supply = Cost of Goods Sold - x 52 APC = DC Productivity = Output Input Total Output ATC = DC + (9)s + (2)k Partial Productivity = Partial Input q = d(T +L) + 207+1 - 1 Multifactor Productivity = Total Output Sum of Partial Inputs UTIL = (T + L)03 1.20 |0 0.80 0 14 2.80 0.9974 -1.15 |0. 7 0.85 0.80234 2.85 0.99781 -1.10 0.13567 0.90 0.81594 2.90 0.99813 -1.05 0.14686 0.95 0.82894 2.95 0.99841Question 4 Abdullah's hotel operates 52 weeks per year 7" days per week and uses a continuous review inventory system. It purchases bags of rice at $10 per bag. The following information is available about these bags: Demand (D) = 420 bags per week Ordering or Setup Cost (S) = $50 per order Annual Holding Cost (H) = 25% Lead Time (L) = 4 weeks (23 working days) Standard Deviation of Weekly Demand = 20 bags Current on-hand inventory is 500 bags, with no open orders or backorders. a) What is the EOQ'? What would be the average time between orders (in weeks)? 1}) What should R be? c) An inventory withdrawal of 20 bags was just made. Is it time to reorder? d) The store currently uses a lot size of 500 bags. What is the annual holding and ordering cost of this policy? Without calculating the EOQ, how can you conclude 'om these two costs that the current lot size is too large? e) What would be annual cost saved by shifting from 500 bags to EO