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1) The new office supply discounter, Paper Clips, Etc. (PCE), sells a certain type of ergonomically correct office chair which costs $300. The annual holding cost rate is 40%, annual demand is 900, and the order cost is $20 per order. The lead time is 4 days. Because demand is variable (standard deviation of daily demand is 2.4 chairs), PCE has decided to establish a customer service level of 90%. The store is open 300 days per year.a. What is the optimal order quantity?b. What is the safety stock?c. What is the reorder point?2) Louisiana Specialty Foods can produce their famous meat pies at a rate of 1650 cases of 48 pies each per day. The firm distributes the pies to regional stores and restaurants at a steady rate of 250 cases per day. The cost of setup, cleanup, idle time in transition from other products to pies, etc., is $320. Annual holding costs are $11.50 per case. Assume 250 days per year.a. Determine the optimum production run.b. Determine the number of production runs per year.c. Determine maximum inventory.d. Determine total inventory-related (setup and carrying) costs per year.3) The MPS calls for 120 units of Product M. There are currently 30 of Product M on hand. Each M requires 4 of Component N. There are 20 units of N on hand.a. Calculate the net requirements for M.b. Calculate the gross requirements for N.c. Calculate the net requirements for N.4) A repetitive manufacturing firm is planning on level material use. The following information has been collected. Currently, the firm operates 250 days per year.Annual demand 22,000 Daily demand 88 Daily production 250 Desired lot size (2 hours of production) 63 Holding cost per unit per year $50 a. What is the setup cost, based on the desired lot size?b. What is the setup time, based on $40 per hour setup labor?Due by 11 pm August 6th 1