Return to the Sam’s Club store in Exercise 6. Assume that the supply lead time from HP is normally distributed, with a mean of 2 weeks and a standard deviation of 1.5 weeks. How much safety inventory should Sam’s Club carry if it wants to provide a CSL of 95 percent? How does the required safety inventory change as the standard deviation of lead time is reduced from 1.5 weeks to zero in intervals of 0.5 weeks?

Data From Exercise 6

Weekly demand for HP printers at a Sam’s Club store is normally distributed, with a mean of 250 and a standard deviation of 150. The store manager continuously monitors inventory and currently orders 1,000 printers each time the inventory drops to 600 printers. HP currently takes two weeks to fill an order. How much safety inventory does the store carry? What CSL does Sam’s Club achieve as a result of this policy? What fill rate does the store achieve?