The LEGO Group has established a fixed quantity inventory system for its stores

in Singapore. As the manager, you have the following information:

Average monthly demand: $355$

Lead time $=45$ days

Ordering cost $=$ $$87$ per order

Unit price $=$ $$9$

Carrying$/$holding rate $=25\%$

Standard deviation of monthly demand $=70.$

Assume $30$ days per month.

Service level $=99\%($z $=3\mathrm{.}085)$

Calculate the economic order quantity and the reorder point $($considering that

only demand for some length of time is known$).$