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Walmart continuously reviews its chairs inventory levels. For one particular popular brand, it currently buys 180on each order. Demand is 5200 per year (100 per week) with a standard deviation of 50 per week. The supplier has a 3-week lead time. The ordering cost is $100 and the holding cost is $30/chair/year. You can assume that Walmart owns the chairs when they are delivered and the desired service level is 90%.

a) Calculate the necessary parameter(s) for Walmart’s inventory policy of this popular brand chairs.

b)What is the safety stock level with this inventory policy?

c)What is the expected shortages per year with this policy?

d)What is the target fill rate with this policy?