Question: [ 2 0 points ] An office suppliers distributor uses a continuous review inventory control system for one of its SKUSThe following information is available

[20 points] An office suppliers distributor uses a continuous review inventory control system for one of its SKUSThe following information is available on the item. Order cost=\$100/order Unit cost $25 Holding cost rate 20% year Number of working days per year=300 Demand 1200 units/vear Standard deviation of daily demand =2.5 units Average lead time 7 days Required cycle-service level I =90% aWhat is the economic arder quantity bWhat should the safety stock and reorder point be to have a 90% service level? What is the total annual cost? Show all calculations to earn full credit. dWhat is the safety stock if the required cycle service level is 95%? What is the total cost? What is the change of total cost when service level changes? Comment on the cost change.

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