Tax Preparers, Inc. works 250 days per year. The company uses adding machine tape at a rate of eight rolls per day. Usage is believed to be normally distributed with a standard deviation of three rolls during lead time. The cost of ordering the tape is $10, and holding costs are $0.30 per roll per year. Lead time is two days.

(a) Calculate the economic order quantity.

(b) What reorder point will provide an order-cycle service level of 97 percent?

(c) How much safety stock must the company hold to have a 97 percent order-cycle service level?

(d) What reorder point is needed to provide an order-cycle service level of 99 percent?

(e) How much safety stock must the company hold to have a 99 percent order-cycle service level?