This is the entire problem given: z score for 95%= 1.66

Osprey Sports stocks everything that a musky fisherman could want in the Great North Woods. A particular musky lure has been very popular with local fishermen as well as those who buy lures on the Internet from Osprey Sports. The environment that Osprey Sports operates in exhibits the following features:

• The cost to place orders with the supplier is $28/order
• The holding cost is $1.00/lure/year
• Demand follows Normal distribution with daily average of 4 lures and standard deviation of 2 lure per day
• Supply lead time is 10 days
• Osprey Sports operates 350 days a year
• Desired service level is 95%

Suppose the management has decided to apply continuous review inventory policy to manage the product.

What is the economic order quantity of the product? (round to the nearest integers)

What should be the reorder point if 95% service level is desired? (round to the nearest number)

What is the sum of fixed ordering and inventory holding cost in a year for the above policy?

If the manager uses a different reorder point at 45, what is the service level that can be achieved?