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A lab orders a number of chemicals from the same supplier, with a lead time two weeks. The assistant manager of the lab must determine
A lab orders a number of chemicals from the same supplier, with a lead time two weeks. The assistant manager of the lab must determine how much of one of these chemicals to order. Usage of the chemical is appropriately normal, with a mean of 15 ml per week and a standard deviation of 5 ml. The lab management decides that the desired service level for this chemical is 95%.
a) What is the average amount of safety stock for the chemical?
b) How much chemical should he order?
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