Question: A company operates 50 weeks per year. The average demand during a week is 50 units with a standard deviation of 5 units. The lead

A company operates 50 weeks per year. The average demand during a week is 50 units with a standard deviation of 5 units. The lead time is constant at 9 weeks. The holding cost is $50 per unit, and the ordering cost is $100 per order. Use a continuous review system with the cycle service level of 90 % to answer the following:

What is the reorder point?
What is the total annual cost of inventory?

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