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Question $2$

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Homework due Apr $16,202411$:$00$ EDT completed

Problem V$\mathrm{.}2.$a

$\frac{0\mathrm{.}0}{1\mathrm{.}0}$ point $($graded$)$

Suppose we operate a retail store that sells hammers. Demand for hammers is normally distributed with average demand of $=20$ hammers per week with a standard deviation of $=10$ hammers per week.

Suppose the store uses a periodic review inventory policy with a base stock policy. The review period is four weeks. The average lead time is three weeks with a standard deviation of one week. The service measure is the fill rate and the target is a $98\%$ fill rate.

What is the minimal base stock level to achieve the service target? Round UP to the nearest integer.

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$70\mathrm{.}25$

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