Lot Size-Reorder Point System Example 5.4 Harvey's Specialty Shop sells a popular mustard that purchased from English company.The mustard costs $10 a jar and requires a six-month lead time for replenishment stock.The holding cost is computed on basis 20%annual interest rate;the lost-of-goodwill cost is $25 a jar;and bookkeeping expenses for placing an order amount to about $50.During the six-month lead time,average 100 jars are sold,but with substantial variation from one six-month period to the next.The demand follows normal distribution and the standard deviation of demand during each six- month period is 25.How should Harvey control the replenishment of the mustard?Lot Size-Reorder Point System Example 5.4 Harvey’s Specialty Shop sells a popular mustard that purchased from English company. The mustard costs $10 a jar and requires a six-month lead time for replenishment stock. The holding cost is computed on basis 20% annual interest rate; the lost-of-goodwill cost is $25 a jar; and bookkeeping expenses for placing an order amount to about $50. During the six-month lead time, average 100 jars are sold, but with substantial variation from one six-month period to the next. The demand follows normal distribution and the standard deviation of demand during each six￾month period is 25. How should Harvey control the replenishment of the mustard?