Question: Walmart uses a continuous review system and operates 52 weeks per year. One of the SKUs has the following characteristics. Demand (D) = 20,600 units/year

Walmart uses a continuous review system and

Walmart uses a continuous review system and operates 52 weeks per year. One of the SKUs has the following characteristics. Demand (D) = 20,600 units/year Ordering cost (S) = $55.00/order Holding cost (H) = $2.50/unit/year Lead time (L) = 3 week(s) Cycle-service level = 90%, z = 1.28 Demand is normally distributed, with a standard deviation of weekly demand of 103 units. Current on-hand inventory is 1,040 units, with no scheduled receipts and no backorders. What is the safety stock for this item if the company wants to provide a 90% cycle-service level? (Enter your response rounded to the nearest whole number.)

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