Sterling Pulp Chemicals manufactures wood pulp processing chemicals, such as caustic soda. In his warehouse are all the spare parts for his equipment as well as supplies such as light bulbs. To manage inventory, the company uses the following procurement model: Each day, the buyer identifies inventory that has reached its reorder point and places orders with the supplier. For example, for item #$14-46-506($a $40$ foot fluorescent bulb$),$ the usage for the last ten months was: $10,10,66,32,34,18,24,9,14$ and $48$ units. A forecast was calculated for November using exponential smoothing or a $=0\mathrm{.}3$ and is $27\mathrm{.}48$ units. The standard deviation of this monthly demand for this light bulb is $18\mathrm{.}84$ units.

The lead time from the supplier, EECOL Electric, is $14$ days and the unit cost is $$1\mathrm{.}40.$ Sterling's annual holding rate is $20\%$ and the ordering cost is $$1.$

Assume that all months have $30$ days.

Calculate the EQ for this item? $($To estimate annual demand, use the November forecast as the average demand$)$

What is the order interval if QEP is adopted?

What are the relevant total costs using the EQ$?$

If the buyer decided to order this bulb $30$ units at a time, what would be the impact on relevant total costs?

If the service level must be $97\mathrm{.}5\%,$ what would be the reorder point $($z$\_(97\mathrm{.}5\%)=1\mathrm{.}96)?$