(The information provided is the same information as in the prior problem.)

Jan Tuttle is the inventory manager of an art supply store. She is developing a plan to manage inventory for red #68 paint. The following information is provided:

• The number of periods between orders (P) for red #68 paint is 15 workdays.
• Average daily demand = 30 units/workday
• Standard deviation of daily demand = 4 units/workday
• Lead-time = 7 workdays
• Desired cycle-service level = 85% (z = 1.04)
• The art supply store is using a periodic review (P) system.

Calculate the Target inventory level T for red #68? In which range below does it fall?

	1.	Less than or equal to 550 units
	2.	Greater than 550 but less than or equal to 600 units
	3.	Greater than 600 but less than or equal to 650 units
	4.	Greater than 650 units