Fresh Dessert Inc. is using a continuous review system for its ice cream. The demand rate for strawberry ice cream is normally distributed, with an average of 300 liters per week. The lead time is 9 weeks. The standard deviation of weekly demand is 15 liters.
a. What is the standard deviation of demand during the 9-week lead time?
b. What is the average demand during the 9-week lead time?
c. What reorder point results in a cycle-service level of 99 percent?