Problem $11-36($Static$)$

Palin's Muffler Shop has one standard muffler that fits a large variety of cars. The shop wishes to establish a periodic review system to

manage inventory of this standard muffler. Use the information in the following table to answer the below questions.

a$.$ What is the optimal target level $($order$-$up$-$to level$)?$

Note: Use Excel's NORM.S$.$INV$()$ function to find the $z$ value. Round $z$ value to $2$ decimal places and final answer to the nearest

whole number.

Optimal target level

b$.$ If the service probability requirement is $95$ percent, the optimal target level will:

Increase

Decrease

Stay the same