1. What is the items EOQ? (Enter your response rounded to the nearest whole number.)
2. What is the reorder point under the continuous review system? (Enter your responses rounded to the nearest whole number.)

Your firm uses a periodic review system for all SKUs classified, using ABC analysis, as B or C items. Further, it uses a continuous review system for all SKUs classified as A items. The demand for a specific SKU, currently classified as an A item, has been dropping. You have been asked to evaluate the impact of moving the item from continuous review to periodic review. Assume your firm operates 52 weeks per year; the item's current characteristics are: Demand (D)=13,000 units/year Ordering cost (S)=$115.00/ order Holding cost (H)=$3.50/ unit/year Lead time (L)=7 weeks Cycle-service level= 98% Demand is normally distributed, with a standard deviation of weekly demand of 74 units