Problem: Company xyz makes Electronic Module 101 (EM 101) that is a primary product for radar and electronic components used by various radar manufactures and defense contractors. They have a fluctuating demand for their product that behaves as a normal distribution. Average yearly demand for EM 101 is 8023 units with a standard deviation of 1457. the company operates 365 days per year. Company xyz has experienced problems as they tend to run out of stock of EM 101 and therefore experience lost sales to competitors that make a similar product. The company wants to practice EOQ methods which includes a safety stock to preclude stock out occurrences. The company wants to operate at a service level of 98%. EM 101 sells for $547 per unit. Annual Holding cost for the item is $4.50 per unit. Recent studies has shown that average lead time for EM 101 is 30 days with a standard deviation of 2 days. Average demand of the product during lead time is 673 units with a standard deviation of 34 units. What should the reorder point (ROP) and safety stock (SS) be for product EM 101 to maintain a service level of 98%? ROP = 19,770 units