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Suppose you own a gas station. The daily demand for gasoline is 2,000 gallons, on an average, with a standard deviation of 250 gallons. You

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Suppose you own a gas station. The daily demand for gasoline is 2,000 gallons, on an average, with a standard deviation of 250 gallons. You purchase gasoline from your supplier (a) $2 per gallon. Assume 360 days a year. Inventory carrying cost per annum is 25% of the cost of gasoline and ordering/replenishment cost per order is $200. You follow the fixed order quantity or a continuous review policy. The lead time for replenishment is 5 days. Calculate the following: a. Optimal order size in gallons. b. Safety stock and Reorder point, if your service level is 92%. c. Minimum, maximum, and average inventory. d. Annual replenishment, inventory carrying cost, and the total cost. c. Your supplier has a policy of delivering gasoline in multiple of 10,000 gallons. In view of the policy, you decide your order quantity to be 30,000 gallons. 1. What would be your anmual cost of replenishment and inventory holding? ii. What penalty would you be paying for not following your optimal policy? Suppose you own a gas station. The daily demand for gasoline is 2,000 gallons, on an average, with a standard deviation of 250 gallons. You purchase gasoline from your supplier (a) $2 per gallon. Assume 360 days a year. Inventory carrying cost per annum is 25% of the cost of gasoline and ordering/replenishment cost per order is $200. You follow the fixed order quantity or a continuous review policy. The lead time for replenishment is 5 days. Calculate the following: a. Optimal order size in gallons. b. Safety stock and Reorder point, if your service level is 92%. c. Minimum, maximum, and average inventory. d. Annual replenishment, inventory carrying cost, and the total cost. c. Your supplier has a policy of delivering gasoline in multiple of 10,000 gallons. In view of the policy, you decide your order quantity to be 30,000 gallons. 1. What would be your anmual cost of replenishment and inventory holding? ii. What penalty would you be paying for not following your optimal policy

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