Problem 4: Slow moving item Base stock policy

Consider the case of a high-value item with unit cost v=350$ per unit , demand rate D=25 units per year, carrying rate r=0.25 $/$/year, lead time L=3.5 weeks=3.5/52 year, ordering cost A=$3.20 and fraction charge per unit short B2 is estimated to be 1/5 i.e., 350/5 or $70 per unit backordered). Assume the system employs the policy of ordering one-for-one each time a demand drops to a specific inventory position (order quantity Q=1)

Develop the policy (find the inventory position)