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A company wants to determine its reorder point ( ROP ) . Demand is variable and they want to build a safety stock into ROP.

A company wants to determine its reorder point (ROP). Demand is variable and they want to build a safety stock into ROP. If the average daily demand is 11, the lead time is 4 days, the desired z-value is 1.96, and the standard deviation of usage during a single day is 2.54, what is the desired value of ROP?

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