NOTE: I ONLY NEED SOMEONE TO SOLVE WHERE IT SAYS Z = (SAFETY STOCK)(STANDARD DEVIATION OF DEMAND DURING LEAD TIME. PLEASE FILL OUT ALL 3 OF THE BOXES. ALL PREVIOUS ANSWERS ARE CORRECT

Annual demand for imported, cured Italian Proscuitto at a small Italian store is 13,000 kilos; weekly demand is 250 kilos with a standard deviation of 40 kilos. The cost of replacing an order is $100, and the time from ordering to receipt is four weeks. The annual inventory carrying cost is $12 per kilo. The manager in charge of ordering is told to reduce safety stock of the item by 25%. If this is done, at what service level will the company be operating? Answers: The current safety stock = 102 .4 The new safety stock = 75% of the current safety stock = 0.75* 102 4 = 76 .8 z = (safety stock)/(standard deviation of demand during lead time) 76 .8 / 80 .41 Using the z-table, the area under z value = 0. 83 07 Therefore, the service level becomes 83 || .07 %