Weekly demand for a popular model of HP printers at a Sam’s Club store is normally distributed, with a mean of 30 and standard deviation of 20. The store manager continuously monitors inventory and currently orders 300 printers each time the inventory drops to 200 printers. HP currently takes four weeks to fill an order.
a. How much safety inventory does the store carry?
b. What CSL does Sam’s Club achieve as a result of this policy?
c. What fill rate does the store achieve?