Question: Bridgestone would like to develop an inventory ordering policy with a 95% probability of not stocking out of tires at one of their retail stores.

Bridgestone would like to develop an inventory

Bridgestone would like to develop an inventory ordering policy with a 95% probability of not stocking out of tires at one of their retail stores. Demand for the tires is 5,000 per year. The store is open 365 days per year. Every two weeks inventory is counted and a new order is placed. It takes 10 days for the tires to be delivered. Standard deviation of demand is 5 per day. There are currently 150 tires on-hand. How many tires should you order? Show all work to get credit

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