Your rm uses a periodic review system for all SKUs classied, using ABC analysis, as B or C items. Further, it uses a continuous review system for all SKUs classied as A items. The demand for a specic SKU, currently classied as an A item, has been dropping. You have been asked to evaluate the impact of moving the item from continuous review to periodic review. Assume your rm operates 52 weeks per year; the item's current characteristics are: Demand (D) = 13,520 units/year Ordering cost (S) = $130.00/order Holding cost (H) = $3.50/unit/year Lead time (L) = 7 weeks Cycle-service level = 99% Demand is normally distributed, with a standard deviation of weekly demand of 64 units. a. Calculate the item's E00. E00 = 1002 units. (Enter your response rounded to the nearest whole number.) b. Use the E00 to dene the parameters of an appropriate continuous review and periodic review system for this item. Refer to the standard normal table when necessary. Under a continuous review system, order units whenever the inventory level drops to units. (Enter your responses rounded to the nearest whole number.)