A local paint store uses a (Q, R) inventory system to control its stock levels. For a popular eggshell indoor paint, historical data shows the distribution of annual demand is approximately normal, with a mean of 468 cans and variance of 1872, expressed as A N (468, 1872). Replenishment lead time for this paint is about 14 weeks. Each can of paint costs the store $6. The fixed cost of replenishment is $45 per order and holding costs are based on a 20% annual interest rate. What is the associated Z-score at the optimal service level? a. 1.01 b. 1.37 c. 2.78 d. 2.03 What is the new reorder point under the optimal service level? a. 172 cans b. 149 cans c. 157 cans d. 189 cans