Regional Supermarket is open 360 days per year. Daily use of cash register tape averages 10 rolls. Usage appears normally distributed with a standard deviation of 2 rolls per day. The cost of ordering tape is $ 1, oforder-ingtapeis$1, and carrying costs are 40 cents per roll a year. Lead time is three days.
a. What is the EOQ?
b. What ROP will provide a lead time service level of 96 percent?