Rickey's Manager has put together the following information regarding one of its product: Weekly Demand = 200 units Standard deviation of weekly demand = 25 units Ordering costs = $30/order Holding costs = $4/unit/year Cycle-service level = 95% (z for 95% = 1.65) Lead-time = 2 weeks Number of weeks per year = 50 weeks

a. Calculate the order quantity and reorder point (ROP) using a Q (continuous review) system

b. Mike the manager switches to using the periodic review system to control the item's inventory. At the last inventory review, Mike checked the inventory of this item and found 200 units. There were no scheduled receipts or backorders at the time. How many units should be ordered? (Hint: Use the EOQ model to derive P, the time between reviews.)