Hello, The answer are in the blue cloud. However, I still don't understand how they got to the results. How did they get 0.841... etc.. can someone explain it to me step by step. thank you.

The annual demand for an item is 1 Million units per year. It costs 200K to place an order and 1000 per year to store an item in inventory. Assume that the company operates 365 days per year. a. What is the Economic Order Quantity? b. How many orders are placed per year? C. How long is the time between placing orders? d. How much is the annual ordering cost? e. What is the minimum inventory held? f. What is the maximum inventory held? g. What is the average inventory held? h. How much is the annual inventory holding cost? Now assume lead time is 3 days. Standard deviation of (normally distributed) demand over lead-time is 2000. Required availability is 80%. i. How much safety stock is needed? Z.80L = 0.841621 x 2000 = 1683.24 j. What should the reorder point be? The annual demand for an item is 1 Million units per year. It costs 200K to place an order and 1000 per year to store an item in inventory. Assume that the company operates 365 days per year. a. What is the Economic Order Quantity? b. How many orders are placed per year? C. How long is the time between placing orders? d. How much is the annual ordering cost? e. What is the minimum inventory held? f. What is the maximum inventory held? g. What is the average inventory held? h. How much is the annual inventory holding cost? Now assume lead time is 3 days. Standard deviation of (normally distributed) demand over lead-time is 2000. Required availability is 80%. i. How much safety stock is needed? R=l + 2.80L j. What should the reorder point be?. [9902.42] = 9903 = 1000000 3 + 1683.24 = 365