BestTech is a local electronics store. You are asked to determine the optimal ordering policy for AM07 Tower Fan. The weekly demand for this tower fan is normally distributed with a mean of 75 units and standard deviation of 10 units. The store follows the continuous review EOQ model to manage its inventory. BestTech orders AM07 Tower Fan from the supplier at a unit cost of $200 and the fixed ordering cost of $180. The annual cost of carrying a unit of inventory at the store is equal to 30% of the unit cost. It takes 2 weeks to receive a delivery. Assume that a year has 52 weeks.

Table of Z values

a. Compute the Economic Order Quantity that BestTech should use.

(I know that unit cost, fixed ordering cost, annual cost, lead time is given. But I don't know what is the demand. how do you calculate the demand and what is the EOQ?)

Probability 0.99 0.98 0.97 0.96 0.95 0.94 0.93 0.92 0.91 0.90 Z-value 2.326 2.054 1.881 1.751 1.645 1.555 1.476 1.405 1.341 1.282 Probability 0.89 0.88 0.87 0.86 0.85 0.84 0.83 0.82 0.81 0.80 z-value 1.227 1.175 1.126 1.080 1.036 0.994 0.954 0.915 0.878 0.842