2. A regional distributor purchases discontinued appliances from various suppliers and then sells them on demand to retailers in the region. The distributor operates 5 days per week, 52 weeks per year. Orders can be received only for business hour. The following data are estimated for a counter-top mixer: Average daily demand (d)=250 mixers Standard deviation of daily demand (d)=35 mixers Average lead time (L)=10 days Standard deviation of lead time (LT)=5 days Holding cost(H)=$9 unit/year Ordering cost (S)=$35 /order Cycle-service level =95%(Z0.95=1.645) The distributor uses a continuous review Q system. (a) What order quantity Q, and reorder point, R, should be used? ( 6%) (b) What is the total annual cost of the system? (4%)