Uses a periodic review inventory system

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Fan manufacturer uses a periodic review inventory system to purchase electric motors. The review period is 4 weeks and the lead time is 2 week. Demand for electric motors is normally distributed with a mean of 800 per week and a standard deviation of 80 per week. The target inventory is 1900 motors.

a) What is the safety stock?

b) What service level is achieved?

Reference no: EM13968971

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