Question: SHOW COMPLETE WORK OR DO NOT ANSWER! A distributor of computer monitors purchases the monitors from an overseas supplier under a continuous review system. The

SHOW COMPLETE WORK OR DO NOT ANSWER!

A distributor of computer monitors purchases the monitors from an overseas supplier under a continuous review system. The average demand for a popular computer monitor is normally distributed with a mean of 50 units a day and a standard deviation of 10 units a day. It costs $75 to process each order and there is a 16 day lead time. The holding cost for each monitor is $20 per year and the distributor wishes to maintain a 90% service level. The distributor operates 300 days in a year. The distributor would like to use a periodic review inventory system to manage their inventory. Use the information in Scenario 9.15. What is the target inventory level needed to achieve a 90% service level?

		greater than 1000 units but less than or equal to 1250 units
		less than or equal to 1000 units
		greater than 1500 units
		greater than 1250 units but less than or equal to 1500 units

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