Question: Mass PC Inc. produces a 4 week supply of its PC pal model when stock on hand drops to 500 units. (It takes 1 week to produce a batch). Factory orders average 400 unites per week and standard deviation of forecast errors is estimated at 125 units.

a. What is MassPC's current Service Level as a decimal vs. percentage? Round to 3 decimal places.

b. Mass PC wants to improve customer service to 80%, 90%, 95% 99%. How will such improvements affect the company’s reorder policy and its annual costs?

c. What Safety Stock is needed to achieve a .99 Service Level? Round to the nearest integer