#$10.$ Consider a retailer using a continuous review inventory policy. The daily demand is

normally distributed with a mean of $50$ and standard deviation of $15.$ The retailer operates $360$

days in a year. The holding cost per unit per year, i$.$e$.h$ is $$1\mathrm{.}8$ and the ordering cost per order is

$$140.$ The shipment lead time is $9$ days. $($i$)$ What would be the ROP for a $98\%$ service policy? $($ii$)$

What is the safety stock and increment in annual holding cost due to safety stock? $(15$ points$)$

$($iii$)$ What would be the service rate using a safety stock that is $60\%$ of what you found in $($ii$)$

$(10$ points$)$

$($iv$)$ What is the EOQ for the inventory item? $(10$ points$)$