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Your new company has decided to use a periodic review system. You have learned the average weekly demand is 48 units with a standard deviation of 8 units. You believe that your cycle service level should be 94% Lead time is 2 weeks. Initially you believe that you should do a review every Friday.
a. Determine the required safety stock and target inventory level.
b. How would this procedure change if the cycle service level needed to be 98%?
c. What is the impact of changing the review period from every Friday to every other Friday, assuming that the cycle service level is 94%?
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