PROBLEM SITUATION #4 Davidson Hardware stocks an expensive composite-based plaster patching compound, currently classified "A" which is controlled by continuous review. Demand is variable, with an average of 6 pounds per week and a standard deviation of 2 pounds per week. Lead time is constant at one week. The firm's current management of the product calls for a safety stock of one (1) pound. 1. The current reorder point for this product is -pounds. a. 5 b. 7 c. 6 d. 8 e none of the above . The current cycle-service level is a. 0.5 b. 1.29 c. 0.8413 d. 0.6915 e none of the above 2. 3. 4. If Davidson wanted to change the safety stock so that the cycle-service level became 90 percent, the new reorder point would be a. 6 b. 9.3 C. 8.6 d. 8 e none of the above Assume that Davidson has reviewed its inventory classifications, and that this item has been reclassified "B" and that it now managed by periodic review. Review occurs once per quarter. With a 90 percent cycle-service level, the proper order target is. unit. a. 54.7 b. 93.7 c. 96.3 d. 84 e none of the above