Business Analytics

Wear A Mask (WAM) uses a continuous review system and operates 52 weeks per year. One of the SKUs has the following characteristics.

• Demand (D) = 20,600 units/year
• Ordering cost (S) = $55.00/order
• Holding cost (H) = $2.50/unit/year
• Lead time (L) = 5 week(s)
• Cycle-service level = 95%, z = 1.65
• Demand is normally distributed, with a standard deviation of weekly demand of 83 units.
• Current on-hand inventory is 1,040 units, with no scheduled receipts and no backorders.

What is the safety stock for this item if the company wants to provide a 95% cycle-service level? (Enter your response rounded to the nearest whole number.)