Jan Tuttle is the inventory manager of an art supply store. She uses a periodic review system for all oil paints. The number of periods between orders (P) for red #68 is 15 workdays. (The store operates 50 weeks per year, five workdays per week.) Additional information concerning red #68 follows.
Demand = 20 units/workday
Standard deviation of daily demand = 4 units/workday
Lead-time = 9 workdays
Desired cycle-service level = 90%
What is the target inventory level T for red #68?
Less than or equal to 550 units
Greater than 550 but less than or equal to 600 units
Greater than 600 but less than or equal to 650 units
Greater than 650 units