The annual demand for a product is 15,600 units. Assume 52 weeks a year. Then the weekly demand is 300 units. The weekly demand is normally distributed with standard deviation 90 units. The cost to place an order is $31.20, and the time from ordering to receipt is four weeks. The annual inventory carrying cost is $0.10 per unit.

(a) How much to order? Find the optimal ordering quantity. (b) When to order? Find the reorder point necessary to provide a 96% service level.

(c) Compose a sentence of inventory policy.