An electronics manufacturer orders a specific connector from the same supplier

every $3$ weeks. Lead$-$time is one week. The supply chain manager must determine

how many connectors to order. A check of stock reveals that $10$ boxes, each

containing $250$ units are currently on hand: Daily usage of the connector is

approximately normal with a mean of $150$ connectors per day and a standard

deviation of $40$ connectors per day. The desired service level is $98$ percent.

a$.$ What is the amount of safety stock of the connector?

b$.$ How many boxes $($each containing $250$ units$)$ should be ordered?

A warehouse manager must set up inventory ordering systems for two new

distribution items, X and Y $.$ Item X can be ordered at any time, but item Y can

only be ordered once every three weeks. The company operates $50$ weeks a year

and the weekly demand for both items is normally distributed. The manager has

gathered the following information about the items:

a$.$ When should the manager reorder each item?

b$.$ Compute the order quantity for Item $x.$

c$.$ Compute the order quantity for Item Y if $500$ units are on hand at the time

the order is placed.

d$.$ Compute the optimal order interval for Item Y $($i$.$e$.,$ the current three$-$week

order interval may not be optimal$).$

e$.$ Compute the savings in average inventory carrying costs if Item Y can be

ordered at any time $($rather than once every three weeks$).$