(s,Q) Inventory Model AUtailer sells umbrellas and experiences demand that follows a normal distribution with a weekly mean of 100 umbrellas and a weekly standard deviation of 20 umbrellas. The cost of each umbrella is $15 and the annualized WACC (weighted average cost of capital) for AUtailer is 20%. Once an order is issued, it is delivered in 5 days. The administrative and delivery costs add up to an average of $50 per order placed. AUtailer works for 50 weeks a year. AUtailer uses (s,Q) model to manage its umbrella inventory and determines the order quantity for each order placed according to EOQ.

b) If AUtailer would like to be in stock 95% of all reorder periods, what would be the inventory level that AUtailer should issue an order?

c) (10 points) Based on your result in part b, what is the level of pipeline inventory?

d) (10 points) Based on your result in part b, what is the level of safety stock?