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NFL Merchandising is ordering polo shirts for Super Bowl XLVI. Orders have to be placed by July 2018 for January 2019 delivery. Based on historical data the demand is with a known mean of 1.7 million units and a standard deviation of 230,000 units. The purchase cost of the polo shirts is $12.1689/unit and sold for a known price $27/unit. Unsold inventory has a salvage value of $6.75.
1. If NFL Merchandising places an order for 1.95 million shirts, what is the service level?
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