The B&S Novelty and Craft Shop in Bennington, Vermont, sells a variety of quality, handmade items to tourists. It will sell 200 hand-carved miniature replicas of a colonial soldier each year, but the demand pattern during the year is uncertain. The replicas sell for $40 each, and B&S uses a 15-percent annual inventory-holding cost rate. Ordering costs are $10 per order, and demand during the lead time follows a normal distribution, with a mean of 15 and a standard deviation of four.

1. What is the recommended order quantity? Round your answer to the nearest whole number.

   EOQ: units

2. 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 z-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.

   Reoder point: units

   Probability of a stockout:

3. 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: units

   Safety stock costs: $