Question: 1, You calculate that your time between orders for can labels in a periodic review inventory should be set at 20 days. Your lead time

1, You calculate that your time between orders for can labels in a periodic review inventory should be set at 20 days. Your lead time for this item is 5 days and your supplier has shown no variation in lead time. The average demand for labels is 240 per day with a standard deviation of 30 labels per day. What safety stock should you set for labels in a periodic review inventory system to maintain a service level of 97%

Assume the z-score for a service level of 97\% is 1.88.

2. Assume that you found that the safety stock in the previous question should be set at 350 labels for the periodic inventory system. The average demand for labels is 240 per day with a standard deviation of 30 labels per day and your service level goal is set at 97%. What should the order up to level be given that your time between orders for can labels in the periodic review inventory is set at 20 days, the lead time for this item is 5 days, and your supplier has shown no variation in lead time?

Assume the z-score for a service level of 97 % is 1.88 .

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