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Weekly demand for an expandable dog kennel unit at a Tractor Supply warehouse is normally distributed with a mean of 664 units per week and
Weekly demand for an expandable dog kennel unit at a Tractor Supply warehouse is normally distributed with a mean of 664 units per week and a standard deviation of 193 units per week. Tractor Supply orders the kennels from its supplier at a cost of $300 per unit. The holding cost is 24% of the purchase cost per unit per year. Tractor Supply would like to maintain a 97% cycle service for these units. Suppose that Tractor Supply reviews its inventory continuously and that lead times for orders placed with the supplier are normally distributed with a mean of 2 week(s) and a standard deviation of 2 week(s). Compute the safety stock required to meet the desired service level. Rounding instructions: Carry calculations to at least 3 decimal places. Round your answer to the nearest tenth of a dollar (one decimal place)
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