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QBP sources a specialty bike seat from a manufacturer in Germany and stocks this in its Bloomington DC . Weekly demand for this bike seat
QBP sources a specialty bike seat from a manufacturer in Germany and stocks this in its Bloomington DC Weekly demand for this bike seat is normally distributed with a mean of and standard deviation of which is fairly steady throughout the year. The seat manufacturer takes one week to supply a QBP order. QBP thinks it has been stocking this item too high and is looking for advice on using a periodic review inventory policy. QBP would like to support an instock probability of on this item and plans to place replenishment orders once every two weeks.
Suppose that QBP has adopted this periodic review policy and today is the day for placing a new order. Looking at the current inventory level, there are currently bike seats in stock. How many bike seats should be ordered according to the policy?
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