How is the service level caculated as the following? (126*11)*.99 is 1372.14 per calculator. Please advise the following question. How do you calculate the service level of 99% in the following problem? I understand that 18 weeks multiplied by 11 days is 198. Please show work of how service level is calculated since (126*11)*.99 is 1372.14 per calculator. e) Given the new uncertain lead time of 126 days (18 weeks) with a standard deviation of 11 days, the new safety stock for 99% service would be 20.28 pallets. This is calculated by taking the lead time multiplied by the standard deviation of demand, which results in 198.0 pallets, and then multiplying that by the service level of 99%, which results in 20.28 pallets. The new reorder point would be the sum of the average demand (52 pallets per year) and the new safety stock (20.28 pallets). This would result in a reorder point of 72.28 pallets. SL = (Lead Time x Standard Deviation of Demand) x Service Level of 99% SL = (126 days x 11 days) x .99 SL = 20.28 pallets Service level is a measure of how frequently an organization is able to meet customer demands. It is calculated using the number of orders filled within a given time period divided by the total number of orders placed. For example, if an organization is able to fill 99% of orders within one week, its service level is 99%. The service level of 99% in the problem given can be calculated by taking the lead time multiplied by the standard deviation of demand, which results in 198.0 pallets, and then multiplying that by the service level of 99%, which results in 20.28 pallets. This can be illustrated in the following formula: SL = (Lead Time x Standard Deviation of Demand) x Service Level of 99% SL = (126 days x 11 days) x .99 SL = 20.28 pallets The new reorder point would be the sum of the average demand (52 pallets per year) and the new safety stock (20.28 pallets). This would result in a reorder point of 72.28 pallets. This can be illustrated in the following formula: Reorder Point = Average Demand + Safety Stock Reorder Point = 52 pallets/year + 20.28 pallets Reorder Point = 72.28 pallets