To make a product costs $24 per liter. The importation cost is a fixed cost of $ 150 additional to the unit costs. The time that takes from placing the order to receiving it is 5 weeks. During this time the average consumed is 80 liters with an std dev. of 4 liters. If the product ends the cost is $45 per liter. They work 52 weeks a year. The annual interest is 20%
(I) What is the order size and reorder point if we want to accomplish 90% of demand in the cycles?
(II) What is the order size and reorder point if we want to minimize average costs? what would be service level type 2?
*Please answer correctly, if don't know then move to other
