For Q*, C*, and R* The holding cost and minimum margin calculations are useful. To determine: Q*, use average forecast/day for days 731-1460 which is 39.19 drums. So Q*(truck) = sqrt(2*39.19*1500/0.57)= 454.16 and Q*(mail) = sqrt(2*39.19*1500/0.59)=446.40 C*, use average forecast demand and std deviation of forecast demand for days 821-1460. Mean is 41.83 and std dev = 24.34. Thus, scaled std dev = 0.04. Cu(truck)=216.93*640=138835.20; and Cu(mail)=86022.40. Co=50000. Then CR(truck)=138835.20/(138835.20 50000)=0.74; and CR(mail)=86022.40/(86022.40 50000)=0.63. Based on this, z(truck) =0.64; z(mail)=0.33. Finally, C*(truck)=41.83 (0.64*0.04) = 41.86 and C*(mail)=41.83 (0.33*0.04)=41.84 R*, use average forecast demand and std deviation of forecast demand for days 731-1460; you will have to assume your team chosen confidence level to determine z. av forecasted demand = 39.19 drums; std dev = 24.20 drums. R*(truck)=39.19(7 Q/C) (24.20*sqrt(7 Q/C)*z); and R*(mail)=39.19(1 Q/C)) (24.20*sqrt(1 Q/C)*z)