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4. (10 marks) The Carpet Discount Store sells Super Shag carpet. The average daily customer demand for the carpet stocked by the store is normally
4. (10 marks) The Carpet Discount Store sells Super Shag carpet. The average daily customer demand for the carpet stocked by the store is normally distributed, with a mean daily demand of 30 metres and a standard deviation of 5 metres of carpet per day. The lead time to receive a new order of carpet is 10 days. The store wants a reorder point and safety stock for a service level of 95%. a. What is the reorder point b. How much is the safety stock. c. Solve a and b again with a service level of 99% d. How much does the increased service level cost in terms of total inventory costs during reordering
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