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Service level during the replenishment

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Reference no: EM13319976

Seagle's ATV Products manufactures various racks to be used on all-terrain vehicles. One particular rack has an average weekly demand of 240 units and weekly standard deviation of 55. The replenishment lead time is two weeks. Compute the necessary reorder point for a 95% service level during the replenishment.

95% = 1.65

I'm having trouble figuring out the missing step, I have the formulas but for some reason the answer I'm getting seems too high.

I'm doing: ROP = 240 +55(1.65) Can someone help me out?

Reference no: EM13319976

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