During the busy season, the store manager has de cided that 98% of the time, he does not want to run out of Sams Cola before the next order arrives. Use the following data to calculate the reorder point for Sams Cola:
Weekly demand during the busy season:.... 325 cases per week
Lead time:................0.5 weeks
Standard deviation of
weekly demand:...............5.25
Standard deviation of lead time:.........0 (lead time is constant)
Number of standard deviations above the mean needed to provide a 98%
service level (z):...............2.05