OfficeShop experiences a one-week order time to restock its HP printer cartridges. During this reorder time, also known as lead time, OfficeShop wants to ensure a high level of customer service by not running out of cartridges. Suppose the average lead time demand for a particular HP cartridge is 15 cartridges. OfficeShop makes a restocking order when there are 18 cartridges on the shelf. In practice, the amount of inventory held on the shelf during the lead time is known as the reorder point. Firms use the term service level to indicate the percentage of the time that the amount of inventory is sufficient to meet demand during the reorder period.
Use software and the Poisson distribution to determine the reorder points so that the service level is minimally99% .
(Fill in the blank below and give your answer as a whole number.)
In order to have enough cartridges99% of the time, cartridges is the reorder point.