Question: ) : A local tech store sells on average 5 0 0 phone cases weekly with a standard deviation of 2 0 0 . Assume

): A local tech store sells on average 500 phone cases weekly with a standard deviation of 200. Assume the demand is normally distributed. Replenishment lead time is 2 weeks. The store is targeting a service level of 95% and uses a periodic review policy under which it reorders cases every 8 weeks.
(a)(5 pts) What is the average order size?
(b)(10 pts) How much safety inventory should the store carry? What should order-up-to level be?

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