Determine the safety stock and reorder point

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The amount of denim used daily by the Western Jeans Company in its manufacturing process to make jeans is normally distributed, with an average of 3,000 meters of denim and a standard deviation of 600 meters. The lead time required to receive an order of denim from the textile mill is a constant 6 days. Determine the safety stock and reorder point if the Western Jeans Company wants to limit the probability of a stock-out and work stoppage to 5%.

Reference no: EM132714118

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