Question: to reduce in safety inventory that Dell can expect Exercise 10 Weekly demand for Lego at a Wal-Mart store is normally distributed with a mean

to reduce in safety inventory that Dell can

to reduce in safety inventory that Dell can expect Exercise 10 Weekly demand for Lego at a Wal-Mart store is normally distributed with a mean of 2,500 boxes and a standard deviation of 500. The replenishment lead time is two weeks. The store manager currently orders replenishment lots of 10,000 boxes from Lego. Assuming a continuous review replenishment policy, evaluate the safety inventory the store should carry to achieve a fill rate of 97.5 percent. 3

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