Super Sound sells stereo equipment. Monthly demand for a particular CD player has historically been normally distributed with mean 28 and standard deviation 8. It takes about three months for a shipment of CD players to arrive, once an order has been placed. Each unit costs the store $60, and it costs $150 to place an order. The inventory carrying cost rate is 30 percent. Assume they use an order quantity based on the standard EOQ.

a) What (Q, R) values would they use if they wish to apply policy 1 with 90 percent service level?

b) What fill rate does this policy achieve?