Question: In a two-bin (continuous review) inventory system, the demand for watchamacallits during the two-week lead time is normally distributed, with an average of 53 units

In a two-bin (continuous review) inventory system, the demand for watchamacallits during the two-week lead time is normally distributed, with an average of 53 units per week. The standard deviation of weekly demand is 5 units. What cycle-service level is provided when the capacity of the second bin (i.e. the reorder point R) is set at 120 units?

A. 50.00%

B. 100.00%

C. 2.38%

D. 99.74%

E. 69.33%

F. 97.61%

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