A medical equipment supplier guarantees a 99% service level for all types of pacemakers. Stock is stored in a central distribution center to serve a single region and is delivered from the production site which has a fixed lead time of 3 weeks.

What reorder level should the distribution center use for an item that has a Normally distributed demand with mean of 15 pacemakers per week and standard deviation of 4 pacemakers? (Note: for 99% service level, the z value = 2.33.)

Select one:

a. 61

b. 45

c. 11

d. 56

e. 16