A large hospital uses a certain intravenous solution that it maintains in inventory.

Pertinent data about this item are as follows:

Forecasted daily usagea $=50$ 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 probabilityc$=85\%$

a$365$ days per year

bnormally distributed

CDuring the lead time or during the order interval plus leadtime, depending on the

inventory control design

What is the EOQ and reorder point $($ROP$)?$