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Daily demand for shower curtains at a MegaMart store is normally distributed with a mean of 12 units and a standard deviation of 3. The supplier, Bed Bath & Curtains, takes on average about 11 days to supply a MegaMart order. The standard deviation of lead time is 3 days. MegaMart is targeting a customer service level of 95 percent (z = 1.65) and monitors its inventory continuously. How much safety inventory of shower curtains should MegaMart carry? What should their reorder point (ROP) be?
A. Megamart should carry 51 units of safety stock and should order their optimal quantity at 208 units
B. Megamart should carry 62 units of safety stock and should order their optimal quantity at 194 units.
C. Megamart should carry 72 units of safety stock and should order their optimal quantity at 210 units.
D. Megamart should carry 57 units of safety stock and should order their optimal quantity at 188 units.
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