It is reasonable to assume that demand over its replenishment lead time of an item, ISF-086, is normally distributed with xˆL = 20 units and σL = 4.2 units.

a. For a desired service level of P1 = 0.90, compute the required safety factor, SS, and reorder point.

b. Repeat for P1 = 0.94, 0.98, and 0.999.

c. Prepare a rough sketch of SS versus P1. Is the curve linear? Discuss.