Please use “Excel” formulas to solve these problems.
ROP = SS +dL
where ROP means Re-Order Point; SS means Safety Stock and dLmeans average demand during the lead time. You would need thisspecific formula to answer part (c).
The local distributor for Macho Heavy Beer is reconsidering itsinventory policy now that only kegs will be sold. The salesforecast for next year (200 days) is 600 kegs. The cost to store akeg of Macho in a refrigerated warehouse is approximately $3 peryear. Placing an order with the factory costs about $4. The demandfor Macho during the 1-day lead time is:

a.
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