A golf specialty wholesaler operates 50 weeks per year. Management is trying to determine an inventory policy for its clubs, which have the following characteristics:

Demand (D) = 5,000 units per year (normally distributed) Ordering Cost (S) =$50 per order

Holding Cost (H) = $10 per unit per year Lead Time (L) = 5weeks

Standard Deviation of Weekly Demand = 3 units Cycle Service Level =95%

1. If the company uses a periodic review policy, what should q and T be? Round T to the nearest week.

2. What should R be if the company uses a continuous review system?