Sherry Clower is trying to figure out how many custom books to order for her class of 25 students. In thepast, the number of students buying books has shown the following demand pattern.

Number of Students Who Bought a Book Percentage of Observations, %

16 or fewer 0

17 6

18 10

19 18

20 19

21 34

22 6

23 5

24 2

25 0

a.Suppose each custom book costs Sherry $16 toprint, and she sells the books to the students for $37

each. Excess books must be scrapped.

TheSherry's target service level is

enter your response here%.

(Enter your response as a percentage rounded to one decimalplace.)

TheSherry's target stocking point is

enter your response here books. (Enter your response as a wholenumber.)

b.Suppose printing costs increase to $24.

The new target service level is

enter your response here%.

(Enter your response as a percentage rounded to one decimalplace.)

The new target stocking point is

enter your response here books. (Enter your response as a wholenumber.)

The target service level and target stocking point have

remained the same

increased

decreased

Jimmy's Delicatessen sells large tins of TomTucker's Toffee. The deli uses a periodic reviewsystem, checking inventory levels every20days, at which time an order is placed for more tins. Order lead time is4days. Daily demand is a constant8tins, so average demand during the reorder period and order lead time(24days) is192tins. Draw a sawtooth diagram. Assume that the beginning inventory level is equal to the restocking level and the desired service level is99.9%.

What is the safety stocklevel? (Hint: Look at the formula for calculating restockinglevel.) What is the average inventorylevel?

z value

Resulting service level(%)

1.28

90

1.65

95

2.33

99

3.08

99.9