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Demand at the local sports store for a new style of Tshirt has been observed to be uncertain and normally distributed with a mean of

Demand at the local sports store for a new style of Tshirt has been observed to be uncertain and normally distributed with a mean of 5T-shirts and a standard deviation of 1.0 T-shirts each day. A re-stock order placed with suppliers costs 20 OMR, and annual holding cost per T-shirt is calculated at 20 percent. The store uses an optimized continuous review policy, and purchases the T-shirts from suppliers for a price of 15 OMR per unit.
The store owner is willing to accept only 2 stockouts on average per year, and the store operates 240 days during the year. What is the store's service level? Round your answer to 3 decimal places.
78.9%
80%
99.91%
This problem cannot be solved because the lead time is not known
89.8%
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