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The periodic review inventory system is used for a product whose weekly demand is normally distributed with a mean of 1200 units and a standard deviation of 200 units. The review period is 4 weeks, while the lead-time is 1 week. The desired service level is 0.95.
a. Find the target inventory.
b. At a review point, the inventory position is found to be 619 units. What is the order quantity?
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