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ALT-CAT 12.3 Continuous Review System Suppose that sales for a shirt are 900 units per month. The past standard deviation of demand has been 141

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ALT-CAT 12.3 Continuous Review System Suppose that sales for a shirt are 900 units per month. The past standard deviation of demand has been 141 units during the lead time, and the replenishment lead time is one month. The store manager decides to order 1,076 units each time. The store uses a continuous review policy. If a 95% service level is desired, what is the required safety stock? What is the reorder point? (use z score 1.64)

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