At an office products company, inventory is kept of Keurig coffee pods. Boxes of breakfast blend pods cost the company $5.50; they sell each box for $9.00. Last year, demand for this product was 72 boxes per week, evenlycspaced throughout the year, and orders are placed on a weekly basis. This demand is expected to continue in thecfuture. The holding cost rate is estimated to be 20% annually. The shipping and other ordering costs is $40 per order. The forecast CV is 25%. The lead-time from order to receipt is 4 weeks. The desired service level is 97%.

a. Calculate the order up to level (OUL). Show all work.

b. Calculate the order quantity if there are 22 boxes in stock and another 404 in transit. Show all work.