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A bakery uses an average of 60 ounces of organic orange juice daily. Demand is normally distributed with a standard deviation of 15 ounces. The bakery places an order every seven days. The lead time for delivery of the juice is three days.
i) Compute the safety stock required to achieve a 95% service level.
ii) If the bakery has 150 ounces at the time an order is placed, how much should be ordered?
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