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. Due to increasing competition, they would like to get the bands delivered faster. Demand for the resistance 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 air from the upstream supplier in China is much faster, at a lead time of just ONE week. Excess unmet demand is backordered and fulfilled later.

Suppose they want to satisfy an in-stock service level of 98.0%, what should be their Order Up to Level, S?

Price: $2.99

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Deliverable: Word Document