To tackle this problem, we will start by computing the Economic Order Quantity $($EOQ$)$ using the following formula:

$=2$ x EOQ $=$ H$2$ x D x S

Where:

$$ D $=$ Demand per year

$$ S $=$ Ordering cost per order

$$ H $=$ Holding cost per unit per year

Given:

$$ Demand per year $($D$)=100$ bags per week x $50$ weeks $=5000$ bags

$$ Ordering cost per order $($S$)=$ $$20$

$$ Holding cost per unit per year $($H$)=15\%$ of price $=0\mathrm{.}15$ x $$10=$ $$1\mathrm{.}50$

a$.$ Calculate the EOQ:

$=2$ x $5000$ x $20/1\mathrm{.}50$

$=2$ x $5000$ x $20/1\mathrm{.}50$

$=365\mathrm{.}15$

b$.$ Calculate the Reorder Point:

To calculate the Reorder Point $($ROP$),$ you can use the following formula:

$=$ ROP $=$ D x L

Where:

L $=$ Lead time in weeks

Given:

Lead time $($L$)=2$ weeks

D $=100$ bags per week

$=100$ x $2$

$=200$

Therefore:

a$.$ The Economic Order Quantity $($EOQ$)$ is approximately $365$ bags.

b$.$ The Reorder Point $($ROP$)$ for the EOQ policy is $200$ bags.