Shark, Inc., a custom paint distributor, orders a 15-day supply of custom paints whenever on-hand inventory falls below the reorder point. Lead time for paint is one day. On Monday, September 30, 23 gallons of paint are in stock. The sales are normally distributed with a mean of 25 gallons per day and a standard deviation of 12 gallons per day. Desired customer service level is 99 percent.
a. What reorder point for paint provides a 99-percent customer service level?
b. How many gallons of paint should be ordered on September 30 if the store is open five days per week?