Daily demand for a certain product is normally distributed with a mean of 60 units and a standard deviation of 7. The source of supply is reliable and maintains a constant lead time of six (6) days. The cost of placing, orders is $10.00 and annual holding costs are $0.50 per unit. There are no stock out costs, and unfilled orders are filled as soon as the order arrives. Assume sales occur over the entire 365 days of the year. Find the order quantity and reorder point to satisfy a 95% probability of not stocking out during the lead time.

Calculate the economic order quantity and determine the re-order point. Please show steps