Determine the safety stock and reorder point

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Reference no: EM132172192

Kelly’s Tavern serves Shamrock draft beer to its customers. The daily demand for beer is normally distributed, with an average of 30 gallons and a standard deviation of 6 gallons. The lead time required to receive an order of beer from the local distributor is 13 days.

Determine the safety stock and reorder point if the restaurant wants to maintain a 90% service level. What would be the increase in the safety stock if a 95% service level were desired? (Round z values and final answer to 2 decimal places, e.g. 25.75.)

Reference no: EM132172192

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