In a reorder point system, the demand rate for gizmos is normally distributed, with an average of 250 units per week. The lead time is 7 weeks. The standard deviation of weekly demand is 25 units.
a.) What is the standard deviation of demand during the 7 week lead time?
b.) What is the average demand during the 7 week lead time?
c.) What reorder point results in a service level of 99.25%?
d.) What is the total amount of safety stock?
e.) How would safety stock change with a service level of 90%?