PLEASE SHOW ALL WORK USING FORMULA TEXT!!! Weekly demand for Dell computers at a Costco store is normally distributed, with a mean of $250$ and a standard deviation of $(150+$ Your Course ID$).$ The store manager continuously monitors inventory and currently orders $1,000$ computers each time the inventory drops to $600$ units. Dell currently takes two weeks to fill an order $($lead time$).$

$1.$ How much safety inventory does the store carry?

$2.$ What CSL does Costco achieves as a result of this policy?

$3.$ How much safety inventory should Costco carry if they desire to improve its CSL by $10\%?$Safety Inventory and CSL Analysis

Weekly demand for Dell computers at a Costco store is normally distributed, with a mean of $250$ and a standard deviation of

$(150+$ Your Course ID$).$ The store manager continuously monitors inventory and currently orders $1,000$ computers each time the

inventory drops to $600$ units. Dell currently takes two weeks to fill an order $($lead time$).$

How much safety inventory does the store carry?

What CSL does Costco achieves as a result of this policy?

How much safety inventory should Costco carry if they desire to improve its CSL by $10\%?$

Continuous Review Policy $($Q system$)$

Inventory is continuously tracked, and an order for a lot size of $Q$ is placed

when the inventory position drops down to the reorder point $($ROP$).$

ROP$=$EDDLT $+SS$

EDDLT $=dxL$

Safety inventory SS $=$ ROP $-$ EDDLT $=$ ROP $-dxL$

Cycle inventory $=\frac{Q}{2}$

Average inventory $=$ Cycle inventory $+$ Safety inventory

Standard deviation of demand during lead time ${}_L=\sqrt[\phantom{2}]{L}$

$z=S\frac{S}{{}_L}$

$CSL=$NORMSDIST$(z)$

safety inventory $SS=z**{}_L$

$z=$NORMSINV$(CSL)$

Safety Inventory SS $=$ NORMSINV $($CSL$)**{}_L$