I ONLY NEED TO KNOW THE AVERAGE INVENTORY LEVEL

Freeport Corporation finds that demand for surfboards has averaged 40 units per week with a standard deviation of 15 units. Delivery lead time from the supplier is a consistent 2 weeks. The item costs $50 each, and the inventory carrying cost is 33 percent. The company estimates that it costs $120 to place and receive each order with the supplier.

Determine the following if the firm wants to achieve a cycle service level of 96%:

Average inventory level

\begin{tabular}{|c|r|r|r|r|} \hline \multicolumn{1}{|c|}{ A } & \multicolumn{1}{c|}{ B } & \multicolumn{1}{c|}{ C } & \multicolumn{1}{c|}{ D } \\ \hline 1 & Weekly demand & 40 & \\ \hline 2 & Standard Deviation & 15 & & \\ \hline 3 & Lead time & 2 & & \\ \hline 4 & Unit cost & 50 & & \\ \hline 5 & Holding cost & 0.33 & \\ \hline 6 & Holding cost & 16.5 & \\ \hline 7 & Ordering cost & 120 & \\ \hline 8 & Annual demand & 2080 & \\ \hline 9 & & & \\ \hline 10 & EOQ & 173.9383 & & \\ \hline 11 & Service level & 1.750686 & \\ \hline 12 & Safety stock & 37.13766 & \\ \hline 13 & Reorder Point & 117.1377 & \\ \hline 14 & Average Inv. Level & & \\ \hline 15 & New Safety stock & & \\ \hline 16 & Service level & 1.750686 & \\ \hline 17 & Safety stock & 93.04083 & \\ \hline 18 & & \\ \hline 19 & & \\ \hline 20 & & \\ \hline 21 & & \\ \hline 22 & & \\ \hline 23 & & \\ \hline 24 & & \\ \hline 25 & & \\ \hline \end{tabular}