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[Solved] A company produces item Y, and uses a fixed quantity inventory system for the product. Lead time to obtain item Y is two weeks. Demand has been

Question: A company produces item $\mathrm{Y}$, and uses a fixed quantity inventory system for the product. Lead time to obtain item $\mathrm{Y}$ is two weeks. Demand has been fairly uniform and the lead time demand has been normally distributed with a mean of 400 units. Standard deviation of weekly demand is 40 units. The desired service level is $98.5 \%$. The setup cost is $20.00, while the item cost is $10.00 and the carrying rate as a percent of the item cost is $20 \%$.