Question $2$: Weekly demand for Oreo's at my local HEB is $2,0001lb$ packages with a standard deviation of

$200$ packages. HEB's set up cost is $$100$ per order with a $$0\mathrm{.}675/$ year$/$package carrying cost. The delivery

lead time is $0\mathrm{.}5$ weeks. They desire a $98\%$ service level $(Z=2\mathrm{.}04)$

Assume $52$ weeks per year

a$)$ What order quantity will minimize HEB's total inventory costs for Oreos?

b$)$ If they order $5500$ packages each time they order $($not necessarily the answer in a$).$ How many

orders will they place a year?

c$)$ What quantity of safety stock should they hold for a $98\%$ service level?

d$)$ At what quantity should they place an order? $($ROP$)$

e$)$ What is HEB's average inventory of Oreos if they order $5500$ packages?

f$)$ What is HEB's total inventory costs if they order $5500$ packages?