Consider a supply chain where a supplier of cereal boxes distributes items to three regional warehouses and from each warehouse the item is sent to 8 different retail locations (that is, there are a total of 24 retail locations). The supplier of the cereal boxes always has sufficient items available to satisfy the replenishment orders from the regional warehouses. However, there is a lead time of 4 days before the item arrives at the regional warehouse. The lead time between the regional warehouse and the retailer equals only 1 day. Both the retailer and the warehouses use a periodic review (S-1,S) policy where the review period is 7 days. Each retail location would like to satisfy a 90% cycle service level, whereas each warehouse would like to satisfy a 98% cycle service level. The daily demand at each retail location follows a Normal distribution with an average of 35 and a standard deviation of 10