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{"ops":[{"insert":"From past experience, Gadge-Go has provided you with the following data about product expectations for year 1:\n \u27a2 Daily average customer sales (normal distribution - 365 days) 167 \u27a2 Daily sales variation (as standard sales deviation): 29 \n\u27a2 Time required from factory order to arrival (days): 36 \u27a2 Cost of placing a factory order (translator, contract exchange): $127\n \u27a2 Opportunity cost of capital (annual): 14%\n \u27a2 \u201cOne-Tool- Caker\u201d value $23.50\n \u27a2 Required service level 75% (company standard) \nTasks: (Total 100 marks)\n 1. Recommend to Gadge-go an order quantity and reorder point for the One-tool- caker based on a continuous review system for year 1. \n2. For results in Part 1, provide an explanation for the method used to calculate the z-score. Is the safety stock level adequate? Why or why not? \n3. Gadge-go wishes to compare results in Task 1 with a periodic review system. What review period and target inventory period would you recommend? Has the safety stock level now changed, and if so, why? \n\n"}]}

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