The average daily demand of a product is 200 units with a standard deviation of 40 units and lead time of 4 days. The cost of holding a unit of a product for one year is $12 and the ordering cost is $45 per order. Consider 365 days per year. 7 questions are below. IMPORTANT: ATTACH YOUR SOLUTION. 1. Calculate the economic order quantity (2 marks). 2. If 92% cycle service level (z=1.41) is required, how much the safety stock should be? (2 marks) 3. If a Q-system is used, what is the reorder point? (2 marks). 4. Now, what is the recommended Q-system? (2 marks). 5. If the on-hand inventory, pipeline inventory, and backorders are 500, 150, and 35, respectively, is it the time to place a new order? (2 marks). 6. Convert the above Q-system to P-system (4 marks). 7. Which is better to use, the Q-system or the P-system? Use the cost as a comparison criterion (3 marks). The average daily demand of a product is 200 units with a standard deviation of 40 units and lead time of 4 days. The cost of holding a unit of a product for one year is $12 and the ordering cost is $45 per order. Consider 365 days per year. 7 questions are below. IMPORTANT: ATTACH YOUR SOLUTION. 1. Calculate the economic order quantity (2 marks). 2. If 92% cycle service level (z=1.41) is required, how much the safety stock should be? (2 marks) 3. If a Q-system is used, what is the reorder point? (2 marks). 4. Now, what is the recommended Q-system? (2 marks). 5. If the on-hand inventory, pipeline inventory, and backorders are 500, 150, and 35, respectively, is it the time to place a new order? (2 marks). 6. Convert the above Q-system to P-system (4 marks). 7. Which is better to use, the Q-system or the P-system? Use the cost as a comparison criterion