A company begins a review of ordering policies for its continuous review system by checking the current policies for a sample of items. Following are the characteristics of one item.

Demand (D) = 64 units/week (Assume 52 weeks per year)

Ordering cost = $50/order

Holding cost = $13/unit/year

Lead time (L) = 2 weeks

Standard Deviation of weekly demand = 12 units

Cycle service level = 88%

EOQ = 160 units

1. To develop the best policies for a periodic review system. What value of P gives the same approximate number of orders per year as EOQ?
2. What Safety stock and target inventory level provide an 88% cycle service level?