Question: Weekly demand for a cellphone at a major consumer electronics retail store is normally distributed with a mean of 750 and a standard deviation of

Weekly demand for a cellphone at a major consumer electronics retail store is normally distributed with a mean of 750 and a standard deviation of 350. The store manager continuously monitors inventory and currently orders under EOQ policy each time the inventory drops to 3000 cellphones. The retailers ordering cost is $1200 and its weekly holding cost is about $0.65 for each cellphone. The supplier of the cellphone takes three weeks to fill an order.

a. How much safety inventory does the store carry? (5 points)

b. What cycle service level does the store achieves as a result of this policy? (For calculating service levels, please feel free to use the Standard Normal Table (Z table) or use the formula NORMSDIST(z value) in Excel.) (10 points)

c. What fill rate does the store achieve? (10 points)

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