review of ordering policies for its continuous review system by checking the current policies for a sample of SKUs. Following are the characteristics of one item.

Demand $=90$ units$/$ week $($assume $50$ weeks per year$)$

Ordering cost $=$ $$55/$ order

Holding cost $=$ $$7/$ unit$/$ year

Lead time $=2$ weeks

Standard deviation of weekly demand $=9$ units

Cycle$-$service level $=88$ percent

a$.$ What is the EOQ for this item?

b$.$ What is the desired safety stock?

c$.$ What is the reorder point?

d$.$ What are the cost implications if the current policy for this item is Q$=250$ and Safety stock$=210?($Hint: compare the total annual inventory costs for previous and current policy$).$

e$.$ iBod decided to change to periodic review system to control the inventory. A recent review shows that the inventory for this item is $200$ units. There were no scheduled receipts or backorders at the time. How many units should be ordered if today is the review day?

$($Hint: Calculate time between orders as the approximation of the time between reviews; expressed in weeks$).$