Question: A company guarantees a 9 5 % cycle - service level for all of its stock items. The company replenishes its stock from a single

A company guarantees a 95% cycle-service level for all of its stock items. The company replenishes its stock from a single supplier who guarantees a lead time of 4 weeks. For an item with a normally distributed demand, the mean demand per week is 900 units, and the standard deviation of demand is 100 units. What should be the reorder level for this item to maintain a 95% cycle-service level? Additionally, what should be the reorder level for this item to maintain a 98% cycle-service level?

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