(Appendix) Billy Blades is a hockey player living in Los Angeles. Billy, a Cana¬ dian, deeply misses Calgary Spring Water and must have it imported. Billy drinks 5 bottles of Calgary Spring Water a day. It takes 4 days for him to receive the water after he orders it because Tim Green must drive to Canada to get it.

a. If Tim Green picks up 15 cases of Calgary Spring Water (24 bottles per case) for Billy each time he goes to Canada, at what point should Billy send Tim Green to Canada to buy more Calgary Spring Water to ensure against a stockout?

b. Using your answer to part

a, if Billy might drink a maximum of 7 bottles of water per day, what should his safety stock level be? What would be his order point assuming that level of safety stock?