$(3$ points$)$ Big Apple Restaurant and Bakery Supply is a major supplier to high$-$end restaurants in

Manhattan. One popular item is their Quick and Easy Rustic Loaf, a parbaked Italian bread that

closely mimics the rustic breads of southern Italy $($que delicioso!$).$ They are delivered frozen to

restaurants who thaw and bake them as needed for a high quality bread to be served in their

restaurants. What none of their customers knows is that Big Apple contracts with Sysco, a

nationwide restaurant supply house to provide these loaves.

Daily demand for the loaves varies somewhat but pretty consistently averages $800$ with a

standard deviation of $70.$ In the city that never sleeps, Big Apple operates $365$ days a year.

When Big Apple places an order for the bread, Sysco tacks on a $$100$ refrigerated shipment

charge, no matter how many loaves Big Apple purchases. Sysco provides a dependable $3-$day

delivery promise on every order. Due to freezer storage costs and the possibility of spoilage, Big

Apple figures every loaf held in inventory for a year costs $$1\mathrm{.}50$ in holding costs. With variable

demand over lead time, Big Apple wants an ordering policy that will ensure enough inventory is

on hand when they place an order to cover demand over lead time $97\%$ of the time