Question 29. Consider a distributor of TV sets that orders from a manufacturer and sells to retailers. Suppose the distributor of the TV sets is trying to set inventory policies at the warehouse for one of the TV set models. Assume that whenever the distributor places an order for TV sets, there is a fixed ordering cost of $4673 which is independent of order size. The cost of a TV set to the distributor is $15 and annual inventory holding cost is 15% of the product cost. Lead time is 2.5 weeks. Historical data of the past 12 months' sales is given as Month Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sales 179 117 140 175 141 140 147 169 99 180 205 202 The distributor wants to ensure 89% service level. Calculate the order quantity, reorder level and the average inventory kept by the distributor