14. A large hospital uses a certain intravenous solution that it maintains in inven- tory. Pertinent data about this item are as follows: Forecasted daily usage = 50 units Forecast error std. dev.b 15 units Average lead time = 7 days Lead time std. dev.b 2 days Annual carrying cost = 30% Procurement cost per order $50 Stockout cost $15 per unit Product value $45 per unit In-stock probability = 85% *365 days per year Normally distributed During the lead time or during the order interval plus lead time, depending on the inventory control design a. Design a reorder point system of control for this item. b. Design a periodic review system of control for this item. c. Do you think the in-stock probability is correctly specified to minimize costs? Appraise with reference to the reorder point system design