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G's Dairy is trying to determine how to manage their stock of raw milk. They have an average daily demand of 48 gallonsper day, but
G's Dairy is trying to determine how to manage their stock of raw milk. They have an average daily demand of 48 gallonsper day, but it varies by about 8gallonsper day. Their lead time for receiving new milkis 3days. They are striving for an 85% service level.
What should be their safety stock for raw milk? (Display your answer to twodecimal places.)
What should be their reorder point for raw milk? (Display your answer to two decimal places.)
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