A company begins a review of ordering policies for its continuous review system by

checking the current policies for a sample of SKUs. Following are the characteristics of one

item.

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

Ordering or setup cost $(S)=$$$50/$order

Holding cost $(H)=$$$\frac{13}{?}$ unit$/$year

Lead time $(L)=2$ weeks

Standard deviation of weekly demand $=12$ units

Cycle$-$service level $=88$ percent

a$.$ What is the EOQ for this item?

b$.$ What is the desired safety stock?

c$.$ What is the reorder point?

d$.$ What are the cost implications if the current policy for this item is $Q=200$ and

$R=180?$