W2.A1.CC Rainger is a business to business distributor of MRO (maintain, repair and operate) products. They have more than 300 retail stores that they serve from a central warehouse. The company uses a 98% service level calculated on the proportion that can be satisfied directly from stock (demand fill rate). The cost for placing an order is $100 and the annual holding cost is 20%. They work 365 days/year:

What Safety Stock level does the company need to reach the desired service level?

What Re-Order Point (ROP) level does the company need to reach the desired service level?