Please use Excel to calculate answers and show work/formulas to cells.

Q1 (50 points). You work for a computer manufacturer. They tasked you to manage the inventory for a critical part they procure on a regular basis. Historical data and forecasts indicate a normal distribution for the weekly demand with a mean of 44 and variance of 122 . There is a 4week lead time for receiving this part and each part costs $22. Accounting uses 35% interest rate for holding costs estimates a stock-out cost of $155 per part and that each order has a fixed cost of $88 per order. a) (30 points) Type 1 Service level-based approach: Assuming that the company wants to use EOQ and achieve a 99% service level in meeting demand, what would be the order quantity, safety stock and the reorder point? b) (20 points) What are the average costs related to holding and setup (ordering)? Q2 (50 points). The ECO bakery that recently opened around the corner, bakes fresh pretzels every morning. The daily pretzel demand is uncertain. They hired you as a systems engineer to help with the optimal decisions about their production. By analyzing previous sales data, you figured out the following: The pretzels cost ECO $0.50 to make and are sold for $1.50 each. At the end of the days, the unsold pretzels are sold to a nearby hospital for 35 cents each. a) (25 points) Based on the distribution above, how many pretzels should ECO bake at the start of the day? b) ( 25 points) If you were to approximate the discrete distribution above with a normal distribution, what would be the optimal number of pretzels to bake at the start of the day? (Hint: you must compute the and of the demand from the above distribution. 2= i (xi)2pi). How does your answer from part (a) and (b) compare. Are the results close? Why or Why not