Question

a. What safety stock provides a 50% service level?

b. What safety stock provides a 90% service level?

c. What safety stock provides a 99% service level?

Answer: Standard deviation during lead time is 20 u2219 = 40 units. Z is 0 for 50% service level, 1.29 for 90%, and 2.33 for 99%. The resulting safety stocks are 0, 51.6, and 93.2.

Answer

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