27. A distributor of large appliances needs to determine the order quantities and reorder points for the various products it carries. The following data refer to a specific refrigerator in its product line:

Cost to place an order	$100	per order
Holding cost	20	percent of product cost per year
Cost of refrigerator	$500	per unit
Annual demand	500	units
Standard deviation of demand during lead time	10	units
Lead time	7	days

Consider an even daily demand and a 365-day year.

What is the economic order quantity?

Note: Round your answer to the nearest whole number.

If the distributor wants a 97 percent service probability, what reorder point, R, should be used?

Note: Use Excel's NORM.S.INV() function to find the z value. Round z value to 2 decimal places and final answer to the nearest whole number.