Question $20$

$0\mathrm{.}5pts$

A drugstore uses fixed$-$order cycles $($i$.$e$.,$ periodic review system$)$ for many of the items it stocks. The manager wants a service level of $0\mathrm{.}95.$ The order interval is $14$ days, and lead time is $2$ days. Average demand for one item is $60$ units per day, and the standard deviation of demand is $12$ units per day. Assume the on$-$hand inventory for the order cycle is $99.$

Determine how much should the drug store order?

$1039$

$940$

$960$

$920$

$1079$