A regional distributor purchases discontinued appliances from various suppliers and then sells them on demand to retailers in the region. The distributor operates 5 days per week, 52 weeks per year. Only when it is open for business can orders be received. The following data are estimated for the countertop mixer:

1. What order quantity Q, and reorder point, R, should be used?
2. What is the total annual cost of the system?
3. If on-hand inventory is 40 units, one open order for 440 mixers is pending, and no backorders exist, should a new order be placed?

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Average daily demand (d)=100 mxers Slandard deviation of daily demand (it)=30 mixers Lead time (L)=3 days Holding cost(H)=$9.40/ mit / year Ordering oost (S)=835/ order Cycle-service level 92 percent The distributor uses a continuous review Q systom