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The Price of the motherboard is $ 200 each. Considering this offer, the order cost is $ 300 / order and the holding fee is

The Price of the motherboard is $ 200 each. Considering this offer, the order cost is $ 300 / order and the holding fee is 30 percent of the price. The lead time is fixed for 2 weeks. The company wants to determine the inventory policy if the service level is 95% desired. 


What is the reorder point of this component? 


What about the Safety Stock, do we need such a policy?


The company also needs to determine the total cost in a year.

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