Question: Allen Enterprises uses a continuous-review inventory control system for one of its most popular computer games. The following information is available on the item. The

Allen Enterprises uses a continuous-review inventory control system for one of its most popular computer games. The following information is available on the item.
The firm operates 50 weeks in a year.
Demand =12,000 games/year
Ordering cost = $30/order
Holding cost = $38/game/year
Average lead time =9 weeks
Standard deviation of weekly demand = 245 games
a. What is the for this item?
b. If Allen wants to provide a 95-percent cycle-service level, what should be the safety stock and the reorder point?

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