Question: Perfect Perambulators makes upscale baby strollers 3 0 0 days per year. They have a subcontractor supply axles for the strollers with a lead time

Perfect Perambulators makes upscale baby strollers 300 days per year. They have a subcontractor supply axles for the strollers with a lead time of 5 days. The annual demand for axles will be 39,000. The cost of processing an order is $560 per order. The unit cost of the axle is $38.80, and the cost of holding these axles is 12.5% of purchase cost.
Q1. If average demand during lead time is normally distributed with a standard deviation of 25 axles, what is the safety stock quantity if the company wants to maintain a 97% service level? (nearest whole unit)
Q2. If average lead time is normally distributed with a standard deviation of 0.5 days, what is the safety stock quantity if the company wants to maintain a 97% service level? (round to nearest whole)

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