The Harpert Store has an exclusive contract with Brussums Electronics to sell its most popular mp3 player. The demand of this mp3 player is very stable at 240 units per day. However, the delivery lead times vary and can be specified by a normal distribution with a mean lead time of six days and a standard deviation of one days. The supply chain manager at Brussums desires to calculate the safety stock and reorder point for a 92 percent service level (in-stock probability).

Open the spreadsheet and perform the required analysis to answer the questions below. Do not round intermediate calculations. Round your answers to the nearest whole number.

1. What is the required safety stock at a 92 percent service level?

units

2. What is the reorder point?

units

| B C Statistical Reorder Point Using Constand Demand and Probabilistic Lead Time 3 4 5 Daily demand (d) Mean lead time (LT) Standard deviation of lead time (OLT) Service level 240 units 6 days 1 days 92% 6 7 Formulas #N/A Z-value for service level 10 Required safety stock 11 ROP units units #N/A #N/A 12 13 14