Assume that you are the director of the inventory management department in a hotel. For 1/2 gallon milks, it is known that lead time is 2 weeks, the demand is normally distributed with a mean of 3300 units, and the standard deviation is 200 units per week. You also know that the desired cycle-service level is 95%. Calculate the safety stock and reorder point for 1/2 gallon milks.

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To calculate the safety stock and reorder point for 12 gallon milks we need to consider the lead tim... View the full answer