I had posted the below before and it has been answered. However, Kindly look at the answer to question $12$ and answer What should be the order size then? $($the order size was not given in th answer provided$)$

Part $1$: Inventory Management Calculation Questions

Please answer the following questions with step$-$by$-$step details and equations. You can submit

hand$-$writings, excel, or word document. Please highlight the final solution for each question.

Thank you. : $)$

A Chemical Shop in Toronto needs to purchase a special raw material from its vendor. The

annual demand is $12960$ units. The purchase price of each unit is $ $12.$ The ordering cost is $ $500$

per time and it is fixed. The vendor is located in BC$,$ so the shop needs to wait for $14$ days for the

order to arrive. The annual inventory carrying cost is $ $1$ per unit.

Note: If the solution is not a whole number, then keep the final solution to the closest whole

number.

Answer Q$1$ to Q$5$:

Assumes that the shop manager uses the continuous review inventory system and the Shop

operates $360$ days during the year with constant daily usage.

Q$1$: What is the optimal order quantity?

Q$2$: How many numbers of order to place every year?

Q$3$: What is the average inventory?

Q$4$: When the Chemical Shop should place the order?

Q$5$: What is the total inventory cost, including total order cost, total holding cost, and total

purchase cost?

Answer Q$6$ to Q$9$:

Due to the production adjustment, the daily usage of such special raw materials is no longer

constant. Assume that the daily usage now follows a normal distribution with a mean of $36$ units

and a variance of $16$ units$2$

$.$ The Shop Manager wants to keep the shortage probability to no more

than $4\%.$

Q$6$: What is the service level this shop wants to maintain?

Q$7$: What is the optimal order quantity?

Q$8$: What is the safety stock level?

Q$9$: Does the reorder point change? If so$,$ what is the new reorder point now?

Answer Q$10$ to Q$12$:

Due to a system failure, the Chemical Shop cannot maintain a continuous monitoring of its

inventory, and thus, the shop now has to check its inventory every $30$ days. During a recent

inventory check on Oct $30$th$,$ the shop manager finds the current inventory is $120$ units. The daily

usage still follows a normal distribution with a mean of $36$ units and a variance of $16$ units$2$

$.$

Q$10$: When should the shop make the order?

Q$11$: To maintain the shortage probability to no more than $4\%,$ what should be the order size?

Q$12$: If the shop manager wants to maintain a service level of $97\mathrm{.}5\%,$ will the safety stock

increase or decrease? What should be the order size then?

Note: Below are information for service level and corresponding Z scores.

Service level $=96\%,$ Z$-$score $=1\mathrm{.}75$

Service level $=97\mathrm{.}5\%,$ Z$-$score $=1\mathrm{.}96$

Part $2$: Inventory Management Short$-$Answer Questions

Discuss the impact of the COVID$-19$ pandemic on global supply chains and inventory

management practices. Provide $1-2$ examples of how organizations adapted their inventory

strategies to respond to the disruptions caused by the pandemic and what lessons can we learn

from them.