The Hastings Company Is a Nation-Wide Wholesaler for Small Electronic

The Hastings Company is a nation-wide wholesaler for small electronic devices. One of its most popular items is a new GPS unit called the WAMI-1,000. Hastings has gathered the following information, and has asked you to develop a continuous review inventory control system for this item:
Order quantity for each order placed with manufacturer = 10,000 units
Average demand = 1,000 units/week
Standard deviation of weekly demand = 200 units
Average lead time = 5 weeks
Standard deviation of lead time: 1.5 weeks
Cycle-service level = 90% (z for 90% = 1.28)
a. What is the standard deviation of demand during lead time?
b. What is the safety stock level that should be carried for the WAMI-1,000?
c. What is the reorder point for the WAMI-1,000?
d. Summarize the actions Hastings should take using your new inventory system.
e. If Hastings decides to increase its cycle-service level from 90% to 95% (z for 95% = 1.65), how does this change the actions that should be taken?