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. Refer to the standard normal table LOADING... for$$ z$-$values.

$$Demand $($D$)=105$units$/$week $($Assume $49$ weeks per$$ year$)$

$$Ordering and setup cost$($S$)=$$$65/$order

$$Holding cost$($H$)=$$$13\mathrm{.}25/$unit$/$year

$$Lead time$($L$)=1$ weeks

$$Standard deviation of weekly demand$=20$ units

$$Cycle$-$service level$=90$ percent

Part $2$

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