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Part number XB2001 has a purchase cost of $300, a holding cost of $60 per year per unit and an annual independent demand of 6,000

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Part number XB2001 has a purchase cost of $300, a holding cost of $60 per year per unit and an annual independent demand of 6,000 units with a standard deviation of daily demand equal to three units per day. The production facility is open ve days per week and 50 weeks per year. Each order placed with the supplier costs $100 and the delivery lead time for this product is four days. The company wants to have a 95 percent service level for this part. {9 points) 3. Compute Q, using the E00 formula. (3 points) h. Compute the total cost to manage this item. (1.5 points) c. Compute BOP. (3 points) d. State the ordering policy for this item. (1.5 points)

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