You work for the company Ice Ginger, which manufactures "refreshing" beverages for use in bar mixers. Due to the random nature of demand for mixers (not every weekend is a bar weekend!), your firm has decided that they want to carry safety stock and thus will need to change the reorder point for their inventory. The demand for mixers is normally distributed with an average demand of 1,000 units per day and a standard deviation of 150 units. Because Ice Ginger manufactures their own mixers, the lead-time for mixers is essentially constant at 4 days. (Total 10 points) a. Given the above information, please calculate the reorder point for the manufacture of mixers if the firm Ice Ginger wants an 85% service level. (2 Points) b. Due to customer outrage at the unavailability of mixers, the firm has decided to update their reorder point again. Using the same parameters as above, please calculate the reorder point if Ice Ginger wants a 90% service level. (2 Points) c. Due to continued outrage at the unavailability of mixers (must be a college town), Ice Ginger has decided to YET AGAIN update their reorder point. Using the same parameters as above, please calculate the reorder point if Ice Ginger wants a 95% service level. (2 points) d. Which of the increases in service level (from 85% to 90% or from 90% to 95%) led to a larger increase in the reorder point? Why do you think this is the case? (4 points)

c is the correct answer.

of the three mortgage options that demarco and tanya have to choose from, the balloon payment mortgage would be their best option, over adjustable payment and fixed payment plans.ultimately, the balloon payment plan would save demarco and tanya overall, in interest, would cost less monthly, and they would only have to make these payments for 8 years, opposing to 30 years for adjustable or fixed payment plans. 

overall, demarco and tanya would save $80,811 if they chose balloon payments over fixed payments, and would save $116,711 if they choose balloon payments over adjustable payments. benefits with choosing fixed payments over adjustable payments is that, in the end, the payments will still be $836.30 a month, while with adjustable payments, the initial monthly payments will be $763.38 to $1082.70 a month, ultimately leading to a more costly purchase. benefits with choosing fixed payments over balloon payments are not present. benefits in choosing adjustable payments over is that it has a lower interest rate, and starts with lower monthly payments initially. benefits in choosing adjustable payments over balloon payments include a lower interest rate, and lower initial monthly payments. benefits in choosing balloon payments over fixed payments include lower interest rates, lower overall price, lower monthly payments, takes less time to pay off, and does not require a downpayment. benefits in choosing balloon payments over adjustable payments include, lower monthly payments (when averaged), takes less time to pay off, and lower overall price.

hence, option c, balloon payments, is the best option for demarco and tanya to make this purchase, for it will save them a minimum of $80811, and a maximum of $116,711.