Fred's bar, a meeting point for the students from Colegio da Barra, have decided to replace the disposable cups with reusable ones. The bar manager knows that on average the daily demand for the reusable cups is 196 with a standard deviation of 6. He also knows that the order cost associated with the cups is 4 and the inventory costs are 0.1/ cup / year. From his historical records, with the cups supplier, he was able to determine that on average the lead time is 11 days, with a standard deviation of 0.5 days. The bar is open 125 days a year. Considering these data, calculate: a) The optimal order quantity of the reusable cups? b) The inventory level that corresponds to the new order point, considering that Fred wants a 99% service level? c) The annual cost of reusable cup orders