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Assume that weekly demand for boxes of Legos at Wal-Mart is normally distributed with a mean of 2,500 boxes and a standard deviation of 500 boxes. The replenishment lead time is two weeks and the inventory is reviewed and an order is placed every 4 weeks. If Wal-Mart wants a 90% customer service level and there are 400 boxes of Legos in inventory at the next review, how many boxes should the inventory analyst order?

Operation Management, Management Studies

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