Cane Sporting is considering changing its current inventory control system for football helmets to a fixed-period inventory system. The information regarding the helmets is a follows: Demand = 10,000 units/year Standard deviation of weekly demand = 25 units Ordering costs = $30/order Holding costs = $4/unit/year Cycle-service level = 95% (z for 95% = 1.65) Lead-time = 2 weeks Number of weeks per year = 50 weeks

a. If a firm uses the continuous review system to control the inventory, what would be the order quantity and reorder point?

b. Assuming no-safety stock is required, what is the economic time interval (T) and optimal replenishment level (M)? (Round your answers).

c. What should be the safety stock be to have a 90% service level?

d. What is the revised replenishment level to have 90% service level?

e. At the beginning of the current week, the materials manager, checked the inventory level of helmets and found, 200 units. There were no scheduled receipts and no back orders. How many units should be ordered if an order should be placed now? (assume 90% service level is required).