. Consider an item with the following demand attributes mean daily demand is equal to 20, standard deviation of daily demand is equal to 8. Compute the safety stock required for continuous review systems in each of the situation given in the table. What do you infer from these calculations.

Lead Time

Service Level

7 days

90%, 95%, 99%

10 days

90%, 95%, 99%

14 days

90%, 95%, 99%

21 days

90%, 95%, 99%

Z value for 90% Service Level is 1.28; Z value for 95% Service Level is 1.65; Z value for 99% Service Level is 2.33