Problem One (25 points): Below table shows the sale history for the past 10 weeks of a furniture company. The operation manager knows that her company tolerate just one stockout per year. She was given the forecast of annual demand for a specific part to be 100,000 units with a 2 weeks lead time. If the order quantity is 10,000 units, calculate: a) Sigma for the demand history time interval. b) Sigma for the lead time interval. c) The service-level. d) The safety stock required for this service level. e) The order-point 1) Recently management said that they consider the service level to one stockout every 2 years, what would the new safety stock be? If the cost of carrying inventory on this item is $10 per unit per year, what is the cost of increasing the inventory from one stockout per year to one every 2 years? Weck Deviction Actual Ded Suured per year, what is me cost of micreasing temvemtony Mom One Stockout per year to one e years? Week Deviation Actual Demand Deviation Squared 2100 2 1700 3 2600 4 1400 5 1800 6 2300 7 2200 8 1600 2 HD 10 2200 TO Problem One (25 points): Below table shows the sale history for the past 10 weeks of a furniture company. The operation manager knows that her company tolerate just one stockout per year. She was given the forecast of annual demand for a specific part to be 100,000 units with a 2 weeks lead time. If the order quantity is 10,000 units, calculate: a) Sigma for the demand history time interval. b) Sigma for the lead time interval. c) The service-level. d) The safety stock required for this service level. e) The order-point 1) Recently management said that they consider the service level to one stockout every 2 years, what would the new safety stock be? If the cost of carrying inventory on this item is $10 per unit per year, what is the cost of increasing the inventory from one stockout per year to one every 2 years? Weck Deviction Actual Ded Suured per year, what is me cost of micreasing temvemtony Mom One Stockout per year to one e years? Week Deviation Actual Demand Deviation Squared 2100 2 1700 3 2600 4 1400 5 1800 6 2300 7 2200 8 1600 2 HD 10 2200 TO