Question: In a continuous-review inventory system, the lead time for custom six-panel doors is five weeks. The standard deviation of demand during the lead time is

In a continuous-review inventory system, the lead time for custom six-panel doors is five weeks. The standard deviation of demand during the lead time is 50 doors. The desired cycle-service level is 99 percent. The supplier of the custom doors decided for competitive reasons to now quote a one-week lead time. How much can safety stock be reduced without reducing the 99-percent cycle service level?
Definition: Cycle-service level = the probability of not stocking out.
a. At lead time of 5 weeks
b. At lead time of 1 weeks

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