2...A company wants to determine its reorder point (R). Demand is variable and the company wants to build a safety stock intoR. The company wants to have a service probability coverage of 95 percent. If average daily demand is 8, lead time is 3 days, and the standard deviation of usage during lead time is 2, which of the following is the desired value ofR?

Multiple Choice

• About 27.3
• About 24.0
• About 19.7
• About 17.9
• About 31.2