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5. Ollah's Organic Pet Shop sells about 4,000 bags of free- range dog biscuits every year. The fixed ordering cost is $15, and the cost of holding a bag in inventory for a year is $2. a. (*) What is the economic order quantity for the bis- cuits? b. (**) Suppose Ollah decides to order 200 bags at a time. What would the total ordering and holding costs for the year be? (For this problem, don't consider safety stock when calculating holding costs.) c. (**) Average weekly demand for free-range dog biscuits is 80 bags per week, with a standard deviation of 16 bags. Ollah uses a continuous inventory review system to manage inventory of the biscuits. Ollah wants to set the reorder point high enough that there is only a 5% chance of running out before the next order comes in. Assuming that the lead time is a constant 2 weeks, what should the reorder point be? d. (**) Suppose Ollah decides to use a periodic review system to manage the free-range dog biscuits, with the vendor checking inventory levels every week. Under this scenario, what would the restocking level be, assuming the same demand and lead time char- acteristics listed in problem 13 and the same 95% service level? (Note that because the standard devia- tion of weekly demand is 16, basic statistics tells us the standard deviation of demand over 3 weeks will be V3 X 16 = 28.)