The B&S Novelty and Craft Shop in Bennington, Vermont, sells a variety of quality, handmade items to tourists. It will sell 600 hand-carved miniature replicas of a colonial soldier each year, but the demand pattern during the year is uncertain. The replicas sell for $30 each, and B&S uses a 10-percent annual inventory- holding cost rate. Ordering costs are $8 per order, and demand during the lead time follows a normal distribution, with a mean of 10 and a standard deviation of ten. a. What is the recommended order quantity? Round your answer to the nearest whole number. EOQ: 56 units b. If B&S is willing to accept a stockout roughly twice a year, what reorder point would you recommend? What is the probability that B&S will have a stockout in any one order cycle? Use Appendix A to determine z-value. Round 2-value to two decimal places. Do not round intermediate calculations. Round your answer for the reorder point to the nearest whole number and for the probability of a stockout to four decimal places. Reader point: Probability of a stockout: units c. What is the safety stock level and annual safety stock costs for this product? Do not round intermediate calculations. Round your answer for the safety stock level to the nearest whole number and for the safety stock costs to the nearest dollar. Safety stock level: 10 units Safety stock costs: $ N 0 0.01 0.02 0.03 0.04 0.05 0.06 0.07 0.08 0.09 0 0.50000 0.50399 0.50798 0.51197 0.51595 0.51994 0.52392 0.52790 0.53188 0.53586 0.1 0.53983 0.54380 0.54776 0.55172 0.55567 0.55962 0.56356 0.56749 0.57142 0.57535 0.2 0.57926 0.58317 0.58706 0.3 0.4 0.5 0.6 0.7 0.8 0.9 NN 1/2 0.59095 0.59483 0.59871 0.60257 0.60642 0.61026 0.61409 0.61791 0.62172 0.62552 0.62930 0.63307 0.63683 0.64058 0.64431 0.64803 0.65173 0.65542 0.65910 0.66276 0.66640 0.67003 0.67364 0.67724 0.68082 0.68439 0.68793 0.69146 0.69497 0.69847 0.70194 0.70540 0.70884 0.71226 0.71566 0.71904 0.72240 0.72575 0.72907 0.73237 0.73565 0.73891 0.74215 0.74537 0.74857 0.75175 0.75490 0.75804 0.76115 0.76424 0.76730 0.77035 0.77337 0.77637 0.77935 0.78230 0.78524 0.80785 0.81057 0.81327 0.78814 0.79103 0.79389 0.79673 0.79955 0.80234 0.80511 0.81594 0.81859 0.82121 0.82381 0.82639 0.82894 0.83147 0.83398 0.83646 0.83891 0.84134 0.84375 0.84614 0.84849 0.85083 0.85314 0.85543 0.85769 0.85993 0.86214) 0.86433 0.86650 0.86864 0.87076 0.87286 0.87493 0.87698 0.87900 0.88100 0.88298 13 0.88493 0.88686 0.88877 0.89065 0.89251 0.89435 0.89612 0.89796 0.89973 0.90147 0.90320 0.90490 0.90658 0.90824 0.90988 0.91149 0.91309 0.91466 0.91621 0.91774 NA 0.91924 0.92073 0.92220 0.92364 0.92507 0.92647 0.92285 0.92922 0.93056 0.93189 15 093319 0.93448 0.93574 0.93699 0.93822 0.93943 0.94062 0.94179 0.94295 0.94408 0.94520 0.94630 094738 0.94845 0.94950 0.95053 0.95154 0.95254 0.95352 0.95449 17 0.95543 0.95637 0.95728 0.95818 0.95907 0.95994 0.96080 0.96164 0.96246 0.96327 0.96407 0.96485 0.96562 096638 0.96712 0.96784 0.96856 0.96926 0.96995 0.97062 097178 0.97193 0.97257 0.97320 097381 097441 097500 0.97558 0.97615 097670 1.8 19 2 0.97725 0.97778 0.97831 0.97882 0.97932 0.97982 0.98030 0.96077 0.98124 0.96169