A manager must set up inventory ordering systems for two new production items, item X and item Y. Item X can be ordered at any time, but item Y can be ordered only once every four weeks. The company operates 50 weeks a year and the weekly usage rates for both items are normally distributed. The manager has gathered the following information about the items

	Item x	Item y
Average weekly demand	60 units	70 units
Standard deviation	4 units per week	5 units per weeks
Unit cost	RM 15	RM20
Annual holding cost	30%	30%
Ordering cost	RM 70	RM 30
Lead time	2 weeks	2 weeks
Acceptable stockout risk	2.5%	2.52%

- When should the manager reorder item X?

- When should the manager reorder item Y?

- Calculate the total inventory cost for item X

- Compute the order quantity for item Y if 110 units are on hand at the time the order is placed

- Calculate the total inventory cost for item Y