EXAMPLE PROBLEM

A hardware company stocks nuts and bolts and orders them from a local supplier

once every $2$ weeks $(10$ working days$).$ Lead time is $2$ days. The company has deter$-$

mined that the average demand for $\frac{1}{2}-$inch bolts is $150$ per week $(5$ working days$),$ and

it wants to keep a safety stock of $3$ days' supply on hand. An order is to be placed this

week, and stock on hand is $130$ bolts.

a$.$ What is the target level?

b$.$ How many $\frac{1}{2}-$inch bolts should be ordered this time?

Then