Turkcell 13:53 %73 HW5.pdf LOG301 - Logistics Planning and Modelling! HWS (100 points) Due 07/01/2021 before 12:30 Instructions: Please submit your answer via Blackboard. Please upload your result as a word processor or spreadsheet file (such as Word or Excel) Provide computational details and do not forget to add a discussion. You may show the details on this file or may provide additional material. You have two chances of submission. Your last submission will be graded. Question: LTL4QR is preparing to take over the supply and inventory process for one of its customers. The customer makes its plans on annual basis and has handed the following information. Once an order is placed, it takes 3 weeks to receive the order from a supplier. The aggregate demand for the product family during the lead time is 12 boxes in average. The purchasing cost of one box is S4, and the cost of placing an order is S75 for paperwork and transportation. The interest rate for holding cost is estimated at 20 percent annually. There is a substantial uncertainty in demand. The calculations show that the demand during the load time follows a normal distribution with a Standard deviation of 16 boxes. LTL4QR estimates that the loss of customer goodwill for not being able to serve the order when requested amounts to $25. Analyzing the data, the company decides to implementa (0, R) policy to control the inventory for this product group. Consider one year as 52 weeks Determine the following quantities: a) (30 points) The optimal values of the order quantity and the reorder level. b) (30 points) The average annual cost of holding, setup and stock-out associated with this item assuming that an optimal policy is used c) (20 points) Optimal safety stock for this order d) (20 points) Suppose that the penalty cost increases from $25 to $100 per unit. What is your expectation for the new (QR) values? Why? Compute the new optimal (Q.R) values and check if you were correct