Southern Home and Gardens sells approximately 38,000 roses per year. The cost of shipping is $45 per order. The holding cost is $4 per rose bush. It takes two weeks for an order to arrive. Weekly demand is 650 pounds of cheese with a weekly standard deviation of 42. Southern Home and Gardens would like to satisfy 85% (Z = 1.04) of their customers. Answer the following questions. (You must put the question letter beside its answer to get full credit.)

5 Point Bonus: Draw a graph of this data.

1. What is the economic order quantity?
2. What is the reorder point?
3. How many backorders will you have each year?
4. How many customers will not get a rose bush each order?
5. Write a paragraph to explain all of the above calculations.