Reconsider the computer retail store in Question 2. The store manager is considering following a periodic review policy to manage inventory of laptops. She plans to order every two weeks. If the store manager wants to keep its 97 percent cycle service level, how much safety inventory should the store carry? What should be its base-stock level be?

Question 2:

Weekly demand for laptops at a computer retail store is normally distributed with mean of 500 and the standard deviation of 220. The supplier takes two weeks to supply a retail store order. The store reviews its inventory continuously and its goal is to provide a cycle service level of 97 percent.

How much safety inventory should the retail store hold at its store? What should the store re-order point be?