C: To provide a 99 percent cycle-service level, the safety stock for this item is __ units.
D: To provide a 99 percent cycle-service level, the reorder point for this item is __ units.
E: For these policies, the annual cost of holding the cycle inventory is $__.
Your firm uses a continuous review system and operates 52 weeks per year. One of the SKUs has the following characteristics. Refer to the standard normal table for z-values. > Demand (D) = 19,600 units/year > Ordering cost (S) = $45.00/order > Holding cost (H) = $4.25/unit/year > Lead time (L) = 1 week(s) > Cycle-service level = 99% > Demand is normally distributed, with a standard deviation of weekly demand of 98 units. > Current on-hand inventory is 1,040 units, with no scheduled receipts and no backorders.