Demand for dishwasher water pumps is 20 per day. The standard deviation of demand is 3 per day, and the order lead time is nine days. The service level is 95%. What should the reorder point be? A. more than 190 B. about 100 C. about 160 D. less than 150 E. about 49
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The safety stock is the buffer stock that is kept to account for any variability in demand or lead time. It ensures that there is enough inventory to meet customer demand during the lead time. To calculate the safety stock, we need to determine the z-value Show more…
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