Problem $20-19($Algo$)$

The annual demand for a product is $17,000$ units. The weekly demand is $327$ units with a standard deviation of $85$ units. The cost to place an order is $$31\mathrm{.}00,$ and the time from ordering to receipt is two weeks. The annual inventory carrying cost is $$0\mathrm{.}10$ per unit.

a$.$ Find the reorder point necessary to provide a $99$ percent service probability. $($Use Excel's NORMSINV$()$ function to find the correct

Reorder point

b$.$ Suppose the production manager is asked to reduce the safety stock of this item by $50$ percent. If she does so$,$ what will the new service probability be$?($Use Excel's NORMSDIST$()$ function to find the correct probability for your computed Z$-$value. Round $"z"$ value to $2$ decimal places and final answer to $1$ decimal place.$)$

Service probability

$\%$