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

What is the reorder point R and associated safety stock level if we want to establish a 99% service level for this item?