A company uses a component for which the forecast of usage is known to be normally distributed with mean absolute deviation (MAD) = 40 units. The company management adopts a policy which limits the stockouts to be no more than one order cycle in a year. Required:

(a) How much safety stock should be kept if the order quantity is generally a 2 weeks' supply?

(b) How much safety stock should be kept if the order quantity is 4 weeks' supply?