Ben's Bistro Stocks a High Volume Item That Has a Normally

question 157

Essay

Ben's Bistro stocks a high volume item that has a normally distributed demand during the reorder period. The average daily demand is 105 units, the lead time is 3 days, and the standard deviation of demand during the reorder period is 4.
a. How much safety stock provides a 98% service level to Thomas?
b. What should the reorder point be?

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