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

Consider a periodic review system, where orders are placed every
1818
days. The firm strives to provide a
94.1894.18%
cycle service level. Demand averages
425425
units per day, and the standard deviation of demand per day is
104104
units. Lead time is
1111
days(round Z-values, standard deviations to two decimal places).
Question content area bottom
Part 1
a. How many units of safety stock should be held?
enter your response here
units(round your response to the nearest integer).
b. What should the target inventory level(order-up-to level) be?
enter your response here
units(round your response to the nearest integer).
c. Suppose that it is time to review the item. There are
167167
units in inventory, and there is an outstanding backorder for
415415
units. An order for
118118
units is on the way. How many units should be ordered now?
enter your response here
units(round your response to the nearest integer).

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