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4. You are working as a supply chain specialist for a distributor of Canadian Crown Royal. Its average weekly demand is 60,000 liters with a standard deviation of 3,000 liters. Your cost for Crown Royal is $15 per liter. Your boss had a crash course in inventory management recently and now understands the difference between the fixed quantity and fixed interval ordering policy. She follows a fixed quantity ordering policy. You receive the supply of Crown Royal from a Canadian brewery and face delays at the Canadian border sometimes that causes the transportation time to be stochastic. Based on your experience, you observed the replenishment lead time is 6 days, on an average, with a standard deviation of 2 days. The monthly inventory carrying cost is 0.5% of the cost of goods and replenishment cost is $800 per replenishment. You maintain a custoiner service level (CSL) of 93 percent. Your boss wants you to utilize your inventory management knowledge and use optimal order quantity model. Compute the following: a. Optimal order quantity, time between orders, and number of orders/annum. b. The risky period during which stock-out can occur. c. Safety stock and Reorder Point. d. Maximum, minimum, and average Inventory. e. Annual Inventory Carrying cost and Annual replenishment cost. f. Your boss recommends that you have replenishment at least every 2 weeks in view of the high replenishment cost. Determine the order quantity, and the penalty you would pay for not following the optimal policy. 4. You are working as a supply chain specialist for a distributor of Canadian Crown Royal. Its average weekly demand is 60,000 liters with a standard deviation of 3,000 liters. Your cost for Crown Royal is $15 per liter. Your boss had a crash course in inventory management recently and now understands the difference between the fixed quantity and fixed interval ordering policy. She follows a fixed quantity ordering policy. You receive the supply of Crown Royal from a Canadian brewery and face delays at the Canadian border sometimes that causes the transportation time to be stochastic. Based on your experience, you observed the replenishment lead time is 6 days, on an average, with a standard deviation of 2 days. The monthly inventory carrying cost is 0.5% of the cost of goods and replenishment cost is $800 per replenishment. You maintain a customer service level (CSL) of 93 percent. Your boss wants you to utilize your inventory management knowledge and use optimal order quantity model. Compute the following: a. Optimal order quantity, time between orders, and number of orders/annum. b. The risky period during which stock-out can occur. c. Safety stock and Reorder Point. d. Maximum, minimum, and average Inventory. e. Annual Inventory Carrying cost and Annual replenishment cost. f. Your boss recommends that you have replenishment at least every 2 weeks in view of the high replenishment cost. Determine the order quantity, and the penalty you would pay for not following the optimal policy