Super Computer Supply, Inc. $($SCSI$)$ is a wholesale vendor that sells computer

components. SCSI has observed that the demand for DVD$-$R drives is normally

distributed with a mean of $10$ units per day and a standard deviation of $3$ units

per day. SCSI orders from its supplier every $30$ days, and the lead time is $14$

days. To maintain competitiveness, management has a set the service level at

$99$ percent.

$($a$)$ What is the target inventory level for this system?

$($b$)$ If the DVD$-$R drives cost $$50$ each, and the annual holding cost is $25$

percent of an item ~Os value, what is the annual holding cost associated

with the safety stock determined in part a$?$

$($c$)$ At the beginning of the review period, the current inventory level is $150$

units. How many units should be ordered?