A product with an annual demand of 1,000 units has C = $ 26.50 and C₁ = $ 7 . The demand exhibits some variability such that the lead - time demand follows a normal probability distribution with μ = 25 and a = 5 . ( a ) What is the recommended order quantity ? ( Round your answer to the nearest integer . ) ( b ) What are the reorder point and safety stock if the firm desires at most a 5 % probability of stock - out on any given order cycle ? ( You may need to use the appropriate appendix table or technology to answer this question . Round your answers to the nearest integer . ) reorder point safety stock ( c ) If a manager sets the reorder point at 30 , what is the probability of a stock - out on any given order cycle ? ( Round your answer to four decimal places . ) How many times would you expect a stock - out during the year if this reorder point were used ? ( Round your answer to the nearest integer . )