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Thomas' Bike Shop stocks a high volume item that has a normally distributed demand during the reorder period. The average daily demand is 70 units,
Thomas' Bike Shop stocks a high volume item that has a normally distributed demand during the reorder period. The average daily demand is 70 units, the lead time is 4 days, and the standard deviation of demand during the reorder period is 15. a. How much safety stock provides a 90% service level to Thomas? b. What should the reorder point be? c. What would be the new safety stock level if the level of service is increased to 95%? Safety Factor Service Level With SD With MAD 50.00 0.00 0.00 80.00 0.84 1.05 90.00 1.28 1.60 95.00 1.65 2.06 97.00 1.88 2.35 98.00 2.06 2.86 99.00 2.33 2.91 99.50 2.57 3.20 99.90 3.09 3.85
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