(Solved): Inventory Management Model: Single-Period Model The local supermarket buys lettuce each day to ensu ...

Inventory Management Model: Single-Period Model The local supermarket buys lettuce each day to ensure really fresh produce. Each morning, any lettuce that is left from the previous day is sold to a dealer that resells it to farmers who use it to feed their animals. This week, the supermarket can buy fresh lettuce for \( \$ 5.00 \) a box. The lettuce is sold for \( \$ 15.00 \) a box and the dealer that sells old lettuce is willing to pay \( \$ 1.60 \) a box. Past history says that tomorrow's demand for lettuce averages 240 boxes with a standard deviation of 36 boxes. How many boxes of lettuce should the supermarket purchase tomorrow ? (Use Excel's NORM.S.INV() function to find the \( z \) value. Round your answer to the nearest whole number. Enter the numbers only) A Page 1 of 2 Inventory Management Model: Multi-period Model- Fixed Order Quantity Model (Q Model) Item \( X \) is a standard item stocked in a company's inventory of component parts. Each year the firm, on a random basis, uses about 1,500 of item \( X \), which costs \( \$ 25 \) each. Storage costs, which include insurance and cost of capital, amount to \( \$ 5 \) per unit of average inyentory. Every time an order is placed for more of item \( \mathrm{X} \), it costs \( \$ 6 \). a. Whenever item \( X \) is ordered, what should the order size be ? (Round your answer to the nearest whole number. Enter the numbers only) \( A \) b. What is the annual cost for ordering item \( X \quad \) ? (Round your answer to the nearest whole number. Round your intermediate calculation.) c. What is the annual cost for storing item \( X \) (Holding cost) ? (Round your answer to the nearest whole number. Round your intermediate calculation.) Page 2 of