Based on available information, lead time demand for PC jump drives averages 50 units (normally distributed), with a stan- dard deviation of 5 drives. Management wants a 97% service level.

a) What value of Z should be applied?

b) How many drives should be carried as safety stock?

c) What is the appropriate reorder point?

...12.29 Authentic Thai rattan chairs (shown in the photo) are delivered to Gary Schwartz's chain of retail stores, called The Kathmandu Shop, once a year. The reorder point, without safety stock, is 200 chairs. Carrying cost is $30 per unit per year, and the cost of a stockout is $70 per chair per year. Given the following demand probabilities during the lead time, how much safety stock should be carried?