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Question
A dry cleaning firm uses an average of 20 gallons of cleaning fluid a day. Usage tends to be normally distributed with a standard deviation of two gallons per day. Lead time is four days, and the desired service level is 92 percent. What amount of safety stock is appropriate if a fixed order size of 600 gallons is used?
= 15 gallons per day;
= 2 gallons per day
LT = 8 days
SL = 7/8 = 87.5 percent (Z = 1.15)
Answer
This answer is hidden. It contains 91 characters.
Related questions
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