Case analysis (state all calculations and analysis processes required for analysis) Example 4. Ajou Hospital uses 1000 boxes of medical bands a week. A box of medical bands costs 35 won. The hospital operates 52 weeks a year. A fixed order cost of 15 won is incurred for a single order. The annual inventory cost is 15 per cent of the cost. (a) Currently, the hospital orders 900 boxes of medical bands once. Determine the difference between economic orders that minimize costs and then determine the amount of savings that can be caused by ordering economic orders. (b) Demand follows the normal distribution (average = 1000 boxes per week, standard deviation = 100 boxes), and order lead time = 2 weeks. Determine the hospital reorder point under the assumption that the service level is 97%.