$(16.)$ CheapBuy is an electronics retail chain selling Gateway netbooks. The demand for the Gateway netbook LT$20$ at their local store is normally distributed with a mean of $120$ netbooks$/$week and standard $larr$ deviation of $10$ netbooks$/$week$.$ CheapBuy orders netbooks from Gateway at unit cost of $$180.$ The annual cost of carrying inventory at the store is $20\%$ of the purchase cost per unit per year. It takes $2L$ weeks to receive a delivery. The store reviews and places an order at the start of each week. The firm wants to maintain a service level of $95\%.$

Given that the store uses the above periodic review inventory policy, which of the following statement is FALSE?

$[$Note: Safety stock is rounded up to the nearest whole number. Regarding $z$ values, please find them in lecture slides.$]$

a$.$ The $z$ value associated with the $95\%$ service level is $1\mathrm{.}64.$ V

b$.$ Safety stock is $29$ netbooks. $(1\mathrm{.}6410\sqrt[\phantom{2}]{2})=23$

c$.$ The holding cost of safety stock is $$5220.(180208)(1\mathrm{.}6410\sqrt[\phantom{2}]{1+2})=$

d$.$ The lead time and review cycle are in total $3$ weeks. $$

e$.$ If the firm wishes to increase its service level, safety stock will increase as well.