In a P system, the lead time for a box of weed-killer is three weeks and the review period is one week. Demand during the protection interval averages 252 boxes, with a standard deviation of demand during the protection interval of 40 boxes.
a. What is the cycle-service level when the target inventory is set at 300 boxes? Refer to the standard normal table as needed. The cycle-service level is %. (Enter your response rounded to two decimal places.)
b. In the fall season, demand for weed-killer decreases but also becomes more highly variable. Assume that during the fall season, demand during the protection interval is expected to decrease to 170 boxes, but with a standard deviation of demand during the protection interval of 70 boxes. What would be the cycle-service level if management keeps the target inventory level set at 300 boxes? Refer to the standard normal table as needed. The cycle-service level would be %. (Enter your response rounded to two decimal places.)
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