Question: . A store has collected the following information on one of its products: Demand = 4 , 5 0 0 units / year Standard deviation

. A store has collected the following information on one of its products:
Demand =4,500 units/year
Standard deviation of weekly demand =12 units
Cycle-service level =90%(z for 90%=1.28)
Lead-time =2 weeks
Number of weeks per year =50 weeks
a) If a firm uses the continuous review system to control the inventory, what is the average amount of safety stock?
b) How many units should he ordered?

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