What level of service does this reorder point correspond to? What would the reorder point and safety stock need to be to achieve the desired service level? Discuss how Jessica James might determinethe order size of caps and what additional, if any, information would be needed to determine the order size.

The Texas Gladiators won the Super Bowl last year. As a result, sportswear such as hats, sweatshirts, sweatpants, and jackets with the Gladiator€™s logo are popular. The Gladiators operate an apparel store outside the football stadium. It is near a busy highway, so the store has heavy customer traffic throughout the year, not just on game days. In addition, the stadium has high school or college football and soccer games almost every week in the fall, and baseball games in the spring and summer. The most popular single item the stadium store sells is a red and silver baseball-style cap with the Gladiators€™ logo on it. The cap has an elastic headband inside it, which conforms to different head sizes. However, the store has had a difficult time keeping the cap in stock, especially during the time between the placement and receipt of an order. Often customers come to the store just for the hat; when it is not in stock, customers are upset, and the store management believes they tend to go to other competing stores to purchase their Gladiators€™ clothing.

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