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A shoe store stocks a pair of house slippers that sell well throughout the year. The typical order quantity is 150 pairs of slippers. The
A shoe store stocks a pair of house slippers that sell well throughout the year. The typical order quantity is 150 pairs of slippers. The daily demand is 5 pairs of slippers with a standard deviation of 1.4. The typical lead time is 6 days, and the shoe store targets a 95% service level. What should be the order-up-to-level (S) under the periodic review inventory policy? (Note: Use the z-table from the lecture notes, and choose the closest answer.)
Multiple Choice
1. 194
2. 218
3. 234
4. 156
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