Explain the amount of safety stock

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The injection moulding department of a company uses an average of 28 litres of a special lubricant a day. The lubricant is replenished when the amount on hand is 186 litres. It takes five days for an order to be received. The current stockout risk is 10 percent. What amount of safety stock would be needed if the acceptable risk of stockout is to be reduced to 5 percent? Refer: z-values table. (Round the final answer to 2 decimal places.)

Reference no: EM132978528

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