Question: Telethon sells exercise resistance bands online to its customers in the United States. Their Distribution center (DC) is located in San Diego, and their supplier is located in China. Demand for the bands is normally distributed with monthly mean 502. Standard deviation of the demand over the month is 125. Assume that Telethon orders every week (i.e., their review period is weekly). Assume demand is independent between periods. The delivery time by boat from their upstream supplier in China is 5 weeks. Excess unmet demand is backordered and fulfilled later.

NOTE: Please assume 4.33 weeks in a month.

What is the average (expected) on hand inventory at their DC at the end of any given week, if they choose an Order up to Level S = 800?

Price: $2.99

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