A manager must setup inventory ordering procedures for two new production items, P34 and P35. P34 can be ordered at any time, but P35 can be ordered only once every four weeks. The company operates 50 weeks a year, and the weekly usage rate for each item is Normally distributed. The manager has gathered the following information about the items:

a. At what inventory level should the manager reorder P34?
b. Calculate the economic order quantity for P34.
c. Calculate the order quantity for P35 if 110 units are on hand at the time the order is placed.

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Item P34 60 units 4 units per week Item P35 Average weekly demand tadard deviation Unit cosl Annual holding cost rate Ordering cost per order Lead time Acceptable stock-out risk 70 unis 5 units per week $20 30% $30 2 weeks 25% $15 30% $70 2 weeks 2.5%