Inventory System Problem Parameters
Daily demand for an an inventory item is normally distributed with average value of 47 units per day
The standard deviation of daily demand is 6
The item is used 365 days per year
We buy the item for $70 per unit
Each time we order, we incur fixed ordering costs of $100 per order
Our annual carrying cost rate is 25%
When we order replenishment inventory, the order lead time is 6 days
The ordering policy currently being used is:
Whenever inventory position falls to R = 320 units, an order is placed for Q = 660 units

Under the ordering policy currently in use, what is the average cycle stock inventory level and the average annual carrying cost?