Question: The Coop in problem 6 has discovered that it should establish a safety stock for its sweatshirts. It wants to use a reorder point system

 The Coop in problem 6 has discovered that it should establish

The Coop in problem 6 has discovered that it should establish a safety stock for its sweatshirts. It wants to use a reorder point system with a two-week lead time. The demand over a two-weck interval can be assumed to have an average of 500 units and a standard deviation of 250 units. a. What reorder point should the Coop establish to ensure a 95 percent service level for cach order placed? b. What reorder point should be established to ensure that no more than one stock-out occurs in the course of a year? c. How much average inventory will the Coop carry for part b? Include both cycle inventory and safety stock in your answer. d. How often will the Coop turn over its inventory using the results from part c

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