Question: Weekly demand for laptops at a computer retail store is normally distributed with a mean of 300 and a standard deviation of 200. The supplier

  1. Weekly demand for laptops at a computer retail store is normally distributed with a mean of 300 and a standard deviation of 200. The supplier takes two weeks to supply a retail store order. The store reviews its inventory continuously and its goal is to provide a cycle service level of 95 percent.

A) How much safety inventory should the retail store hold at its store?

B) What should the store re-order point be?

C )Assume the cost of placing an order is $500. In addition, the annual unit holding cost is 15% of the product value, which is $1200. What is the average inventory level of this laptop at this retail store under the (Q,R) policy?

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