A beer distributor reorders when a stock item drops to a reorder point. Reorder points include statistical

safety stocks with the service level set at $95$ percent of not stocking out. For beer, the forecast usage for the

next week is $500$ cases and the standard deviation of demand has been $137$ cases. Purchase lead$$time is also

one week $($a five$$day work week$).$

a$.$ What is the safety stock?

b$.$ What is the reorder point?

c$.$ How many times larger would the safety stock have to be to provide a $99$ percent service level to the

customers? How many working days$$ supply does the $99$ percent level provide?