Tacky Souvenirs sells lovely handmade tablecloths at its island store. These tablecloths cost Tacky $$15$ each. Customers want to buy the tablecloths at a rate of $240$ per week. The company operates $52$ weeks per year. Tacky, the owner, estimates his ordering cost at $$50.$ Annual holding costs are $20$ percent of the unit cost. Lead time is $2$ weeks. Using the information given,

a$.$ Calculate the economic order quantity.

b$.$ Calculate the total annual costs using the EOQ.

c$.$ Determine the reorder point.

Show your work below:

$d=6004,5*d=500,LT=3,z=1\mathrm{.}64$

Gray's Pharmacy uses a periodic review inventory system. Every Friday, the pharmacist reviews her inventory and determines the size of the replenishment order. For example, she knows that demand for $500mg$ metformin tablets, a drug for diabetics, is normally distributed with a mean of $6000$ tablets each week with a standard deviation of $500$ tablets per week. Lead time is three weeks. The desired cycle$-$service level is $95$ percent $)=(1\mathrm{.}645.$ There are currently no outstanding orders.

a$.$ Calculate the required safety stock.

b$.$ Calculate the target inventory level.

c$.$ If$,$ when she reviews her inventory of metformin, the pharmacist finds that she currently has $19,000$ tablets, calculate the appropriate replenishment order quantity.

Show your work below:

a$-$

$3$