A firm is managing its inventory system using order-up-to policy, and orders every day. For the first 100 days, truck transportation is used and the lead time is 1 day. The corresponding order-up-to level is 100. The manager then finds out that truck transportation is too expensive. Thus, starting from the order of the 101st day, train transportation is used and the lead time becomes 2. Correspondingly, the order-up-to level is changed to 150.

(a) Fill in the following form:

Beginning of Day	98	99	100	101	102	103
Inventory level	35
on-order inventory	30
inventory position
order
receive
demand	42	33	37	48	39	50

(b) Suppose that the demand for each day follows a normal distribution with mean 40 and standard deviation 6. What is the service level for the first 100 days and the service level after the 101st day?