1. Bob's Bugs Be Gone is operating under a continuous review system has an average demand of 50 bugs nets per week. The average lead time for the bug nets is 6 weeks. It costs Bob $30 to process each net order. The holding cost for each net is $10 per year. Bob's Bugs Be Gone operates 52 weeks per year.

If Bob desires a 90% service level and demand is constant but the standard deviation of lead time is 1.5 weeks, what is the required safety stock quantity?

2. Columbia University needs 4000 notebooks for the summer semester, 2000 for the spring semester, and 4000 for the winter semester (there is no variability of demand or lead time). It costs $100 to place an order for the notebooks. It costs $1.00 per year per notebook to hold them in inventory. What amount should Columbia order if it uses the EOQ calculation?