The usage of letterhead paper has an approximately normal distribution with a mean of 200 sheets per working day and a standard deviation of 13 sheets. Letterhead paper is ordered from a printer whose deliveries take 25 working days. The purchasing agent has established a 99% service level.
What is the safety stock (in a whole number)?
What is the reorder point (in a whole number)?
Can you find the optimal order quantity for this problem?