One item a computer store sells is supplied by a vendor who handles only that item. Demand for that item recently changed, and the store manager must determine when to replenish it. The manager wants a probability of at least 96 percent of not having a stockout during lead time. The manager expects demand to average a dozen units a day and have a standard deviation of 3 units a day. Lead time is variable, averaging 1 days with a standard deviation of one day. Assume normality and that seasonality is not a factor. What is the reorder point to achieve the desired service level? (round to 2 decimal places) Answer: Demand for walnut fudge ice cream at the Sweet Cream Dairy can be approximated by a normal distribution with a mean of 21 gallons per week and a standard deviation of 7 gallons per week. The new manager desires a service level of 90 percent. Lead time is 9 days, and the dairy is open seven days a week. (Hint: Work in terms of weeks.) If the ROP model is used, what is the appropriate safety stock level to achieve the desired service level? Round to two decimal places.