Determine the quantity to order

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Question

ADB has chosen to order its office supplies on a fixed date each week. The average consumption is 25 units per week with a standard deviation of 5, the stock on hand 25, the delivery time 2 weeks and the interval between two orders is one week.

The company would like to ensure a 99% level of service.

Determine the quantity to order.

Reference no: EM133524101

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