KungFu Panda is a popular Chinese takeout in a large metropolitan city. The restaurant is famous for its noodle soup, for which special noodles are sourced from a small local authentic Chinese noodle production plant. The inventory of raw materials in the restaurant is managed by the chefs daughter, Ms. Huan, who balances college studies with running the stock room. She only has time once a week to check inventory levels and place orders for items running low. Unfortunately, Chegg.com is not very helpful in running a real operation.

To keep her chef parents happy, she wants to ensure a 98% cycle service level. Data on daily usage (demand) of noodle boxes for the past 30 days, and lead time of the last 20 orders placed with the supplier is available in the Excel file. You may assume that this data is representative and can be used to estimate demand and lead time.

The cost of a box of noodles for KungFu Panda restaurant is 2$. The holding cost is 25% of an items value. See below for remaining data.

A) What is the average inventory level?

B) What is the annual inventory holding cost?

C) On the inventory check day, Huan finds 2570 boxes. She checks her notebook and notices that an order for 3000 boxes was placed but not yet received. How much quantity should she order from the supplier?

Day Order # Demand (usage of noodle boxes per day) 1 276 2 527 3 606 4 527 5 543 6 590 7 758 8 573 Lead time (# days) 1 3.6 2 3.9 3 3.2 4 3.9 5 4.8 6 7 2.7 2.9 2.7 8 9 618 9 2.8 10 419 10 0.3 11 11 12 745 705 582 12 3.5 3.1 2.3 13 13 14 477 14 1.9 3.8 15 621 15 335 16 16 17 2.3 2.4 17 541 531 18 18 3.3 19 19 657 446 2.1 4.5 20 20 21 435 22 348 23 24 25 769 592 728 531 630 738 26 27 28 29 565 370 30 Day Order # Demand (usage of noodle boxes per day) 1 276 2 527 3 606 4 527 5 543 6 590 7 758 8 573 Lead time (# days) 1 3.6 2 3.9 3 3.2 4 3.9 5 4.8 6 7 2.7 2.9 2.7 8 9 618 9 2.8 10 419 10 0.3 11 11 12 745 705 582 12 3.5 3.1 2.3 13 13 14 477 14 1.9 3.8 15 621 15 335 16 16 17 2.3 2.4 17 541 531 18 18 3.3 19 19 657 446 2.1 4.5 20 20 21 435 22 348 23 24 25 769 592 728 531 630 738 26 27 28 29 565 370 30