2. The annual mean demand for a certain kitchen-table at Smart Home (SH) is 9,000 units. Ordering cost per order is $50,

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2. The annual mean demand for a certain kitchen-table at Smart
Home (SH) is 9,000 units. Ordering cost per order is $50, holding
rate is 22%, and unit cost is $500. To apply the EOQ model with
service level, demand records were collected daily. The daily
demand is normally distributed, with a mean of 25 units and a
standard deviation of 15 units. Lead time = 3 days
2.3 SH received an offer from
another supplier to purchase the tables for $498 a unit, but with a
lead time of 60 days. Should this supplier be preferred over the
current supplier (who sells the tables for $500 a unit and requires
only 3 days lead time), if the 92% service level needs to be
maintained? Base your answer merely on the total cost. In the
Answers sheet answer Yes/No, and show the requested quantities.