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Weekly demand for wheelchairs at a Walgreens warehouse is normally distributed with a mean of 5 4 3 units per week and a standard deviation

Weekly demand for wheelchairs at a Walgreens warehouse is normally distributed with a mean of
543 units per week and a standard deviation of 66 units per week. Walgreens orders the wheelchairs
from Medline at a cost of $79 per unit and the holding cost is 26% 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 continuously and that lead times for orders placed
with Medline are constant at 2 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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