An electronics retailer sells LED TVs with a normally distributed daily demand with a mean of 150 and a standard deviation of 75. The lead time to receive a replenishment from their supplier is 2 days. They review their inventory and place orders every two days. They operate 7 days a week.

A.) If they were to implement an order-up-to model, what base stock level should they choose if they want to achieve a 99.3% in-stock probability?

B.) When they check their inventory level to place new orders, they find that they ran out of stock completely. In addition, they find that there are 5 customers who paid for the products and are waiting to receive the products. How many LED TVs should they order?