Question: Consider a periodic review system, where orders are placed every 1 9 days. The firm strives to provide a 9 4 . 8 4 %

Consider a periodic review system, where orders are placed every 19 days. The firm
strives to provide a 94.84% cycle service level. Demand averages 415 units per day,
and the standard deviation of demand per day is 105 units. Lead time is 13
days (round Z-values, standard deviations to two decimal places).
a. How many units of safety stock should be held? units (round your response to
the nearest integer).
b. What should the target inventory level (order-up-to level) be? units (round your
response to the nearest integer).
c. Suppose that it is time to review the item. There are 179 units in inventory, and
there is an outstanding backorder for 424 units. An order for 136 units is on the way.
How many units should be ordered now? units (round your response to the
nearest integer).
 Consider a periodic review system, where orders are placed every 19

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