Weekly demand for Canon printers at a BestBuy store is normally distributed with a mean of 250 and a standard deviation of 80. Inventory is continuously monitored and an order of 1,000 printers is placed each time the inventory drops to 950 printers. The replenishment lead-time is three weeks.
a) How much safety inventory does the store carry? What is the CSL?
b) Assume that the supply lead-time from Canon is normally distributed with a mean of 3 weeks and a standard deviation of 2 weeks. How much safety inventory should BestBuy carry if it wants to provide a CSL of 97 percent?
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