The daily demand for a particular product is normally distributed with a mean of 80 units per day and a standard deviation of 30 units per day. The company places an order every 10 days. Once an order is placed, it takes 4 days for the order to be received. The company wants the probability of meeting demand after placing an order to be at least 98%.
What is the target level required to meet the 98% probability?
Suppose 300 units are in stock at the next review, how many units should be ordered?