Weekly demand for jeans at a gap store is normally distributed, with a mean of 100 and a standard deviation of 50. the supply plant takes three weeks to supply a gap order. the store manager monitors its inventory continuously and reorders jeans when the available inventory drops below 350.

a) how much safety stock does the store carry?
b) what csl does the store achieve?
c) if the store manager wants to target a csl of 95 percent, how much safety inventory of jeans should the store carry?
d) what should its rop be based on the safe inventory derived in (c)?

M. cotteleer electronics supplies microcomputer circuitry to a company that incorporates microprocessors into refrigerators and other home appliances. one of the components has an annual demand of 235 units, and this is constant throughout the year. carrying cost is estimated to be $1.25 per unit per year, and the ordering (setup) cost is $21 per order. a) to minimize cost, how many units should be ordered each time an order is placed? b) how many orders per year are needed with the optimal policy? c) what is the average inventory if costs are minimized? d) suppose that the ordering cost is not $21, and cotteleer has been ordering 125 units each time an order is placed. for this order policy (of q = 125) to be optimal, determine what the ordering cost would have to be.