Question 3 (5 points). A store uses a continuous review system ( Q system) for one of its items having the following characteristics: Demand D=20 units/week (assume 52 weeks per year), standard deviation in weekly demand =5 units Ordering or setup cost (S)=$40/ order Holding cost (H) per item per year =$10 Lead time (L)=4 weeks (constant) z=1.62 (for cycle-service level of 95% ) a) What is the EOQ (round up). What is the desired safety stock SS (round up), and what is the desired reorder point R (Round to the nearest integer). What is the total annual cost related to the Q system. b) The store decides to switch to a Periodic Review system, considering P=EOQ/D (round down). What is the new total annual cost related to the P system? c) What will be total annual cost of the Q system if the average lead time is 4 weeks, with a standard deviation of 1 week