Please download the quiz 1 questions here:   Quiz1-Fall2021-…

Please download the quiz 1 questions here:   Quiz1-Fall2021-1.pdf  Once you are done writing your solutions, please write your name on top of the paper(s) and scan (you can use your phone’s camera to take pictures instead) and upload them to this question to complete the quiz.

An item is used in an assembly operation at an average rate…

An item is used in an assembly operation at an average rate of 60 per week (5 days a week, 50 weeks a year) with a standard deviation of 5 per week. Demand is normally distributed. The item costs $12.5 per unit. The fixed order cost is $50, and the holding cost is $2.50 per item per week. The lead time is 2 days. (a) Calculate the safety stock needed for a service level of 95% using a continuous review policy. (b) Calculate the average annual cost of inventory holding and ordering. PLEASE SHOW YOUR WORK. STATE ANY EXCEL FORMULAS USED.