1. Consider an item whose demand is continuous but stochastic. This item is ordered once every cycle when the inventory in hand reaches the reorder level. The supply lead time is 5 periods. This means that the quantity ordered is delivered 5 periods after the order is placed. The per period demand is normally distributed with a mean of 30 units and a standard deviation of 7 units. The company wants to target a CSL of 95 percent. This means that out of a hundred cycles, the item will stock out about 5 times. A stock out event occurs when the demand during the lead time exceeds the reorder level.

1. Simulate the demand per period for 5 periods in any ordering cycle; repeat for 300 cycles. Please name the cycles as 1, 2, 3, , 300. You may use the Excel functions NORMINV and RAND() for the simulation. Alternatively, you may use the random number generator to generate 300 random values of per period demand.
2. Calculate the reorder level (for continuous review) corresponding to the CSL and the other data given. Note that this value will be the same for all the cycles.
3. Denote a stock out event as 1. Use 0 to denote the cases when there is no stock out. Use a simple conditional function for this. Count the total number of stock out events. Estimate the empirical value of the probability of a stock out. Hence, estimate the empirical value of the CSL.

Please solve in excel and give screen shoots of it,With formulas