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A cell phone manufacturer is preparing its inventory and production schedule. A key element is installing a SIM card into each phone. Demand has been averaging 224 cards per week. Holding costs are $0.02 per card per week, and reorder costs are estimated at $15 per order.

The manufacturer does not want to be out of stock on more than 1% of their orders. There is a one-day delivery time. The standard deviation of demand is five cards per day. Assume a normal distribution of demand during lead time and a seven-day work week. What is the reorder point?

A. 42

B.44

C. 46

D. 48

2. Bank Drugs sells Jami Michelle lipstick. Jami Michelle Company offers a 6% discount on orders of at least 500 tubes, a 10% discount on orders of at least 1,000 tubes, a 12% discount on orders of at least 1,800 tubes, and a 15% discount on orders at least 2,500 tubes.

Bank sells an average of 42 tubes of Jami Michelle lipstick weekly. The normal price paid by Bank Drugs is $1 per tube. If it costs Bank $42 to place an order, and Bank's annual holding cost rate is 28%, determine the optimal order policy for Bank Drugs. (Assume the store is open 52 weeks per year. Round your answer to the nearest whole number.)

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