A grocery store's top selling item is corn cereal, and the store wants to make sure that it does a good job managing inventory for this item.

For the purposes of this question you can assume that the cereal never goes bad, so you don't have to worry about shelf life. The demand per day for this cereal is normally distributed with a mean of 30 boxes and a standard deviation of 11 boxes. The lead time for this item is 12 days.

The unit inventory value for this item is $3.20, and the inventory carrying rate is 18%. The fixed ordering cost is $17. When calculating the order quantity, you should assume that there are exactly 365 days in a year (i.e., this is not a leap year) In the above scenario about cereal what is the mean demand during a lead time? In the above scenario, what is the standard deviation of the demand during a lead time? In the cereal scenario if we use the quasi optimal method, what should be the order quantity? 

What should be the reorder point s to achieve a perfect service fill rate of 0.92? What should be the reorder point s to achieve a fraction fill rate of 0.995? 

What would the perfect service fill rate need to be in order for the reorder point to be same as that for a fraction fulfilled fill rate of 0.995?