Question: A hardware company stores nails and orders them from a local supplier once every 2 weeks (10 working days). Lead time is 2 days. The

A hardware company stores nails and orders them from a local supplier once every 2 weeks (10 working days). Lead time is 2 days. The company has determined that the average demand for 1 inch nails is 136,500 per year, and that the standard deviation of demand is 80 units. The companys management stated that it wants to maintain a 96% customer service level. The stock on hand is 1,440 nails, and an order is to be placed this week. How many 1 inch nails should be ordered this time?

a. 5,759 nails

b. 4,560 nails

c. 6,480 nails

d. 5,000 nails

e. 6,000 nails

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