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Problem - 2 : Sun & Surf You are running an independent shop that sells beachwear, accessories, and souvenirs at Rehoboth Beach every day for

Problem-2: Sun & Surf
You are running an independent shop that sells beachwear, accessories, and souvenirs at Rehoboth Beach every day for nine months out of the year. Your number one selling item is the Ray Ban Wayfarer sunglasses. Your current sunglass supplier is Cool Shades. Cool Shades charges you a wholesale price of $12,960 per gross[1], with a shipping charge of $72 per gross. Sun Styles, another suppler, charges $13,104 per gross with a shipping charge of $108 per gross. Your average carrying rate for sunglasses is $0.28 per item. Given the following information, which suppler should you use.
\table[[,\table[[Cool],[Shades],[(current)]],\table[[Sun Styles],[(proposed)]]],[Average order cycle time (OCT),18,6],[Standard deviation of OCT,3.5,1.5],[Demand per day,20,20],[Service level,97.7%,97.7%
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