Q$2)-($ShopCo$)$: ShopCo is a North America based large store format retailer of home improvement products with $>2,000$ stores. Each ShopCo store generally operates independently, ordering and receiving product directly from its suppliers.One supplier $($Hurricane Drills$)$ sells a portfolio of electric drills that, on average,cost ShopCo $$75$ each. Each store uses periodic review policies to order directly from Hurricane and uses an annual holding charge of $15\%.$ Assume $52$ week year. $($a$)-$ Find the $($R$,$ S$)$ ordering policy for Hurricane drills for store #$1301$ given:Forecasted annual demand of Hurricane drills is ~N$(3,400,400)$Lead Time is $1$ weekReview Period is $4$ weeksDesired CSL $=95\%$Hurricane has a minimum order quantity $($MOQ$)$ of $240$ drillsOrders need to be in multiples of $12$ drills to fit on pallets $($b$)-$ What is the expected annual cost of cycle and safety stock?