A national consumer electronics retailer sells an outsourced product on-line for$250a unit. It is estimated that the annual market demand for this item is normally distributed, with a mean of 28,000 units and a standard deviation of 2,000 units. The manufacturer (i.e. the vendor) charges the retailer a wholesale price of$90/unit and a fixed cost of$1,400for every purchase lot delivered, regardless of the lot size. It has been observed that the delivery lead time is approximately normally distributed with an average of 1 month and a standard deviation of0.2month. The retailer incurs a fixed order processing cost of$100per order and has a holding cost rate of$0.2/$/year. Currently, the retailer employs a continuous review replenishment policy for this item, with an order quantity of 10,000 units and a reorder point of 3000 units, based on the recommendation of the company's comptroller. (a) What are the expected annual total relevant cost and the cycle service level resulting from the current ordering policy?