Answer:
475
Explanation:
The computation of the target level that should be set is given below:
= demand per day × (lead time + review period)+ safety stock
where
safety stock is
= z value at service level × standard deviation × √(review period + lead time)
= 1.64 × 5 × √(7 + 2)
= 24.67
Now the target level should be
= 50 × (7 + 2) + 24.67
= 474.67
= 475
