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Weekly demand for wheelchairs at a Walgreens warehouse is normally distributed with a mean of 7 2 5 units per week and a standard deviation

Weekly demand for wheelchairs at a Walgreens warehouse is normally distributed with a mean of
725 units per week and a standard deviation of 127 units per week. Walgreens orders the
wheelchairs from Medline at a cost of $162 per unit and the holding cost is 37% of the purchase
cost per unit per year. Walgreens would like to maintain a 98% cycle service level for its wheelchairs.
Suppose that Walgreens reviews its inventory every 6 week(s) and that lead times for orders placed
with Medline are constant at 3 week(s).
Compute the safety stock required to meet the desired service level for Walgreens.
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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