e Maintaining the Stock of 2% milk using a Q-Model Suppose the daily demand for 2% milk is normally distributed with a =10 gallons and o=3, the ordering costs are $25/order, the holding costs are $0.20/unit/day, the lead time is 4 days and the desired customer service level is 95%. 1. What is the EOQ? gallons 2. What is the average demand over the lead time? gallons: 3. What is the variance of the daily demand for 2% milk (i.e., a,2)? 4. What is the variance of the demand for 2% milk over the lead time (i.e., o)? 5. What is the standard deviation of the demand for 2% milk over the lead time (i.e.. a)? 6. What is the value of a? 7. What is the value of za? 8. What is the reorder point R? (Round to two decimals.) gallons (Round to closest integer value.) 9. When the on-hand inventory drops to the reorder point, how much is ordered? Check