Consider the data given below and determine the best ordering policy for Camps Antique Clocks (CAC). CAC has an annual inventory carrying cost of $55 per unit per year, stock-out cost is $33 per unit, ordering cost is $15 per order, and the annual requirement is 290 units. Demand during replenishment lead time has the following probability distribution:

Determine the minimum-cost lot size and reorder point for the antique clocks.

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DEMAND DURING LEAD TIME (IN UNITS) PROBABILITY .07 2 .25 .27 .24 8. .09 10 .05 12 .03 4.