Nawras Tech assembles laptop computers from generic components. It purchases its colour monitors from a manufacturer in Taiwan with a lead time of one week. Daily demand for monitors is normally distributed with a mean of 30 monitors and a standard deviation of 8 monitors. The company has determined that the ordering cost is OMR 125 per order, the annual holding cost is OMR 25 per monitor, and the stockout cost is OMR 160 per lost sale. Currently, Nawras Tech accepts a 5% risk of stockout. Assume 350 days per year and 7 days in a week.

a) Calculate the current fill rate.

b) What is the annual cost of lost sales?