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Daily demand of Dulcolax tablets in a drug store follows a normal distribution with an average demand of 50 strips and standard deviation of demand
Daily demand of Dulcolax tablets in a drug store follows a normal distribution with an average demand of 50 strips and standard deviation of demand equal to 20 strips. It takes 4 days to supply the order placed by the drug store. The store is targeting a service level of 95% and monitors its inventory continuously (For 95% service level, consider the value of z = 1.64). Assume that the supply lead time is also normally distributed with a mean of 4 days and standard deviation of 2.5 days. What is the approximate safety stock? Group of answer choices 225 215 205 235
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