Question: In a continuous review inventory system, the lead time for door knobs is 5 weeks. The standard deviation of demand during the lead time is

In a continuous review inventory system, the lead time for door knobs is 5 weeks. The standard deviation of demand during the lead time is 85 units. The desired cycle-service level is 99 percent.

The supplier of door knobs streamlined its operations and now quotes a one-week lead time. How much can safety stock be reduced without reducing the 99 percent cycle-service level?

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