The daily demand for a product is 1,250 with a standard deviation of 350. The lead time is 6 days and the lot size is 3,000 units. To ensure the product never runs out, a safety inventory of 800 products is kept.

a.What is the expected shortage per cycle under this policy? Report your answer to two decimal places.

b.What is the fill rate under this policy? Report your answer to four decimal places.

c.What safety stock should be held to put the fill rate at 0.98? Report your answer two decimal places.

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