A product with an annual demand of 1150 units has C_o = $22.5 and C_h = $7. The demand exhibits some variability such that the lead-time demand follows a normal probability distribution with = 29 and = 7.

1. What is the recommended order quantity? If required, round your answer to two decimal places. Q^* = fill in the blank 1
2. What are the reorder point and safety stock if the firm desires at most a 3% probability of stock-out on any given order cycle? If required, round your answers to the nearest whole number. Record point = fill in the blank 2 Safety stock = fill in the blank 3
3. If a manager sets the reorder point at 34, what is the probability of a stock-out on any given order cycle? If required, round your answer to four decimal places. P(Stockout/cycle) = fill in the blank 4 How many times would you expect a stock-out during the year if this reorder point were used? Number of Orders = fill in the blank 5