Short Answer
Daily demand for a product is normally distributed with a mean of 1,200 units and a standard deviation of 120 units. The firm currently uses a reorder point system with a lead time of 8 days.
A) What safety stock provides a 49 percent service level?
B) What safety stock provides a 98 percent service level?
C) Does doubling the service level double the amount of safety stock required? Does it double the ROP?
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