Question 1 (based on text example 5.4 page 297) It is now one year later in Harvey's business. Mustard sales have boomed to 125 jars every six months and are more consistent with standard deviation dropping to 20. Harvey has been able to drop his order cost to $40 and more accurately assessed his loss of goodwill for missed sales to be $15. Unfortunately, the federal reserve bank has increased interest rates and his cost of capital is now 25%. Given this updated information, use a (Q,R) model to determine a) The optimal values of (Q,R) i.e. at what point in inventory should a new order be placed and how many jars should be ordered. b) The safety stock level. c) The proportion of demands that are not met