Calculate the target inventory level

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Bob's Bike Helmets, inc. is a high-volume seller of bike helmets. The helmet chin straps are ordered from a supplier. Orders are submitted once every four weeks. Delivery is guaranteed in 1.5 weeks. Demand for the chin straps is normally distributed with mean of 1200 straps per week and a standard deviation of 350 straps per week. Bob's wants to maintain a service level of 97.5%.

Calculate the target inventory level (T) for this system. Round to the nearest integer.

Reference no: EM131092187

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