Distributed demand during the reorder period

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Reference no: EM13334658

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 95% service level to Thomas?

b. What should the reorder point be?

Reference no: EM13334658

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