Graded Homework

Your new company has decided to use a periodic review system. You have learned that average weekly demand is 54 units per week with a standard deviation of 10 units. You believe that your cycle-service level should be 94 percent. Lead time is two weeks. Initially, you believe that you should do a review every Friday.

(Round your intermediate calculations and final answers to nearest whole numbers, the tolerance is +/-1.)

Determine the required safety stock and the target inventory level.
Safety stock =

units
TI = units

How would this procedure change if the cycle-service level needed to be 98 percent?
safety stock becomes

, and the target inventory becomes

What is the impact of changing the review period from every Friday to every other Friday, assuming that the cycle-service level is 93.9 percent?
Safety stock =

units
TI = units