Procter & Gamble

$($

P&G

$)$

$$is an US

$-$

headquartered multinational consumer goods corporation. P&G maintains inventories of its wide range of products. P&G uses a fixed

$-$

quantity inventory system to manage one of its popular household cleaning products. Based on historical data, the demand for this product is normally distributed. The lead time is

$2$

$$weeks$.$ The mean of lead time demand is

$4$

$0$

$0$

$$units and the standard deviation of lead time demand is

$2$

$5$

$$units$.$ Due to the competitive environment, a stockout of

$2$

$\%$

$$during lead time is considered acceptable.