Introduction to Materials Management 8th Edition by Steve Chapman ,Tony Arnold ,Ann Gatewood ,Lloyd Clive

Exercise 21

A regional warehouse orders items once a week from a central warehouse. The truck arrives 3 days after the order is placed. The warehouse operates 5 days a week. For a particular brand and size of chicken soup, the demand is fairly steady at 20 cases per day. Safety stock is set at 2 days' supply.
a. What is the target level?
b. If the quantity on hand is 90 cases, how many should be ordered?