Gas processing plant has vat of industrial lubricant

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Reference no: EM131039347

A gas processing plant has a vat of important industrial lubricant for the machinery at the plant. Since an external supplier is responsible for maintaining the inventory of the lubricant, the supplier has a sensor set up on the vat that sends them a notification (by text message) as soon as the vat reaches a specific level of remaining volume. The demand for the lubricant averages 20 litres per day (with a standard deviation of 3.5), and the supplier requires a five-day lead time to refill the vat (assume it is exactly five days with no variability). If the supplier wishes to promise a 97.5% cycle-service level, at what volume should the sensor be set to contact the supplier ? (Please double-check your answer, even if it shows up as one of the choices below.) a. 107 b. 100 c. 116 d. 135

Reference no: EM131039347

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