Problem 1: (60 points) A golf specialty wholesaler operates 50 weeks per year. Management is trying to determine an inventory control policy for its 1-irons, which have the following characteristics: Mean demand = 2000 units/year Demand is normally distributed Standard deviation of weekly demand = 20 units Order cost = $72/order Annual holding cost = $5/unit Desired cycle-service level = 90% Lead time = 4 weeks Current on-hand inventory is 300 units, with no open orders and a backorder of 50 units. Currently, the company uses a continuous review (s, S) policy.

a. What is the EOQ? (15 points)

b. What should be the safety stock? What should the reorder point be? (15 points)

c. An inventory withdrawal of 20 units was just made. Is it time to reorder? (10 points)

d. Please describe briefly the inventory control policy based on your calculation including the order quantity, when to order and how often to order. (20 points)