Weekly demand for DVDs at a retailer is normally distributed with a mean of 1087 boxes and a standard deviation of 310.

Assume the following data:

There are 51 working weeks in a year.

Lead time for delivery of an order is 4 weeks.

The retailer takes ownership of the product only when the product reaches the store, i.e., the retailer is not responsible for in-transit (pipeline) inventory.

Fixed cost (ordering and transportation) per order is $87.

Each box of DVDs costs $3.

Percent carrying cost is 18% of the unit value.

The retailer currently orders 13033 DVDs when stock on hand reaches 5045.

1. What is the annual ordering cost under the current policy?

2. Based on the information given above, how many units of safety stock is the retailer currently holding?

3. What is the annual inventory holding cost under the current policy?

4. What is the z-score under the current policy?

5. What is the current service level? Give your answer in percentage points.

Please show your steps.