Problem 1 For the RQ policy, set up the formulas so that you can calculate the appropriate safety stock given the problem and the criteria (S1, S2, B1, B2, B3). Criteria values are in the table below. Assume 52 weeks per year. d = 2600 units/year, L = 2 weeks, . A = $25, r = $0.2, = 40 units . v = $6 Find the value of the reorder point for the following criteria: for L = 2 S1 0.85 S2 0.99 B1 $30 B2 B3 $1.50 $100 weeks R A company sells products using a (T, S) type of control system. The fixed ordering cost of each item is $20. A manager reviews the stock monthly. The supplier delivers at their location following a lead time of 10 days (use L=1/36 years). The inventory carrying charge is 0.12$/$/year. Assume 360 operating days per year. The manager has observed that the demand for the XRL line is as follows: Item Demand d 0_1 (per year) XRL-1 1500 $10 35 XRL-2 500 $35 50 XRL-3 1000 $20 40