Mountain Man, a sporting goods store, is trying to figure out continuous review order policy for infuser water bottle. The bottle has following characteristics:

• Length of a year 52 weeks
• Demand per week (d) 50 units per week
• Supply (ordering/setup) cost (S) 77 per order
• Holding cost (H) 10 per unit per year
• Lead-time (L) 3 weeks
• Standard deviation of weekly demand (_t) 6 units
• Cycle-service level (z) 91 %

a. What is the EOQ for the bottle?

b. What is the desired safety stock?

c. What is the reorder point?

d. What is the total inventory costs for the bottle for Mountain Man?

e. What are the cost implications if the current policy for bottle is Q = 350 and R = 190?