Stock-a-Lot maintains inventories of parts to support repairs of manufacturing equipment. For a subset of its parts, the expected use, unit cost, and replenishment lead time for the upcoming year are forecast as follows:

Reconsider the Stock-a-Lot problem, and suppose now that the warehouse supplies several regional facilities. Assume the warehouse is stocked according to the policy computed in part (c) of Problem 3. Consider a single facility supplied by the warehouse that has 12-hour actual delivery times and a demand rate for part 4 of 10 units per year. Compute the following for part 4.

(a) Find the expected number of outstanding backorders at the warehouse.

(b) Determine the expected effective lead time to the facility.

(c) Treating demand at the facility as Poisson, find the minimum base stock level for part 4 at the facility that achieves a target service level of 99 percent.

Part 2 (units/year) 10 5 20 50 Cost (S/unit) 1,000 100 200 1,000 50 Lead Time (months) 1 2