Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Daily consumption of a particular type of spare part in an auto-repair shop follows the normal distribution with a mean demand of 150 and a

Daily consumption of a particular type of spare part in an auto-repair shop follows the normal distribution with a mean demand of 150 and a standard deviation of 50. It takes 5 days to get an order of the spare parts from its supplier. The store wants to maintain 95% customer service level (for 95% service level, assume the value of z = 1.64) and monitors its inventory continuously. What is the approximate safety stock? Group of answer choices 183 153 203 146 193

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Essentials Of Systems Analysis And Design

Authors: Joseph Valacich, Joey F George

5th Edition

0133469530, 9780133469530

More Books

Students also viewed these General Management questions