Quick Print Inc. uses plain and three$-$hole$-$punched paper for copying needs. Demand for each paper type is highly variable. Weekly demand for the plain paper is estimated to be normally distributed with a mean of $100$ and a standard deviation of $55($measured in boxes$).$ Each week, a replenishment order is placed to the paper factory and the order arrives four weeks later. The demand is already normalized, so there is no need to recalculate the mean and standard deviation forl $+1$ periods. All copying orders that cannot be satisfied immediately due to the lack of paper are back$-$ordered. The inventory holding cost is about $$1$ per box per year.

Question $2(1$ point$)$

Suppose that Quick Print Mecides to establish an order$-$up$-$to level of $700$ for plain paper. At the start of this week, there are $556$ boxes in inventory and $150$ boxes on order. How much will Quick Print order this week?

Quick Print should not order this week

$353$

$706$

$700$

Question $3(1$ point$)$

What is Quick Print's optimal order$-$up$-$to level for plain paper if Quick Print operates with a $99$ percent in$-$stock probability? $($Round the answer to the nearest whole number. Use the Standard Normal Distribution Function table.$)$

$228$

$353$

$700$

$218$