Amazon classifies its selfoperated products into two categories based on the average daily sales volume Products with an average daily sales volume exceeding 50 units are considered fastturnover items while those with less than 50 units are considered slowturnover items Fastturnover products are managed using a continuous review reorder point method for inventory and ordering while slowturnover products are managed using a periodic ordering method 7 days a week 52 weeks a year a For a product A with an average weekly sales volume of 360 units and a standard deviation of 25 units the unit cost is 150 and the annual inventory holding cost is 10 of the product cost The cost incurred for each order is 500 and the supplier delivers within two weeks If you want to ensure a 99 probability of not running out of stock during the order cycle what inventory policy should be adopted determine the reorder point and order quantity