A convenience store uses the fixed-period inventory control system (FPS) to manage its inventory of distilled water bottles. This system relies on the following information. Average weekly demand 120 bottles per week Lead time 4 days Order cost $20 per order Unit cost $0.80 per bottle Annual inventory holding cost 24% for a year Standard deviation of weekly demand 15 bottles per week Desired service level with safety stock 80% Current on-hand inventory 89 Current scheduled receipts 0 Current backorders 0 Number of operating weeks per year 52 weeks Number of operating days per week 7 days

In the following, please follow hints closely. (a)[5] Using EOQ (rounded up), what is the time interval between reviews T in operating days? Note that after having the rounded-up EOQ, you should not round up values at intermediate steps; and, you should round T up only after the last calculation. (b)[3] What is the current inventory position (IP) in bottles? (c)[5] Without safety stock, what is the replenishment level without safety stock M(AD) in bottles? Note that the question does not ask for M(ST). (d)[2] If today is the review day and without safety stock, what is the order quantity in bottles given M(AD)?