Question: The daily demand for a component at a hardware store is normally distributed, with an average of 1 0 0 and a standard deviation of

The daily demand for a component at a hardware store is normally distributed, with an average of 100 and a standard deviation of 10 units. The store manager is willing to accept a risk of stockout 3% of the time during the lead time, which is constant at 6 days.
a. The service level that the store manager wants to maintain=?
b. The appropriate value of Z (i.e., the number of standard normal deviations)=?
c. Safety stock =? Units
d. Reorder point =? Units

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