As the procurement head of a food company, you need to ensure that reorder quantities for the various items have been correctly established. You decide to test one item and choose Zaitun Oil. A fixed quantity inventory system has been used. You have the following data available to you. You wish to maintain a service level of 95% (assume a -score of 1.65). Assume the demand occurs 365 days per year. Determine the order quantity and the ander point, Cost per kg of oil AED 15 Holding cost 10% of per kg cost of oil Demand 2000 per year Ordering cost AED 50 per order Standard deviation of daily demand 1.5 kg of oil Delivery lead time 7 days