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In Step 2 , you were given the safety stock of 5 0 ; however, this can be calculated for a more accurate number. Assume
In Step you were given the safety stock of ; however, this can be calculated for a more accurate number. Assume that the average daily demand for part number is with a standard deviation of parts per day. If the company wants to make sure that they do not stockout more than of the time, then what level of safety stock should they hold?
As part of your analysis of these results, how does the safety stock calculated here compare to the safety stock requirement in step
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