1. Johnson Co. has implemented a new ordering system and plans to order Disney themed birthday party sets using a continuous review inventory system. The historical data shows that demand for the product is 1200 set per month with a standard deviation of 80 sets per month. The fixed cost of ordering is expected to be $90 per order using the automated system; the inventory holding rate is 24% per year (assume simple interest rate), and each set costs $25, and lead time is 0.5 month, the target fill rate during the lead time is 95%. Given this information calculate (round all numbers to the nearest integer) (40 Points)
   1. Economic order quantity (7 Points)
   2. Safety stock (7 Points)
   3. Reorder point (6 Points)
   4. Average inventory level (6 Points)
   5. Total cost per year (inventory holding cost plus fixed cost of ordering) (7 Points)
   6. Assuming that there is a lead time uncertainty in addition to the demand uncertainty, calculate the new safety stock when the standard deviation of lead time is 6 weeks. (7 Points) (Assume 1 month is equal to 4 weeks)