11.8. A company stocks an SKU with a weekly demand of 225 units and a lead time of 3 weeks. Management will tolerate one stockout per year. If sigma for the lead time is 175 and the order quantity is 800 units, what is the safety stock, the average inventory, and the order point? Average weekly demand 225 Step 1. get the service level Lead time (weeks) 3 Total demand in a year Standard deviation during LT 175 Number of orders Order quantity 800 Service level # of weeks in a year 50 Step 2. get the corresponding safety factor Allowed stockout times 1 Safety factor Step 3. get the safety stock, average inventory, and order point Safety stock Order point Average inventory