Judy uses a continuous review system

$($

Q system

$)$

$$to manage inventory for Ipad at Bestbuy store. Judy collected the following numbers based on her observation:

Demand

$=$

$1$

$0$

$$units

$/$

wk

$($

assume

$5$

$2$

$$weeks per year

$)$

Ordering and setup cost

$($

S

$)$

$=$

$$$

$4$

$5$

$/$

order

Holding cost

$($

H

$)$

$=$

$$$

$1$

$2$

$/$

unit

$/$

year

Lead time

$($

L

$)$

$=$

$3$

$$weeks

Standard deviation in weekly demand

$=$

$8$

$$units

Cycle

$-$

service level

$=$

$7$

$0$

$\%$