Reference no: EM132303561

XYZ factory is under contract to make labels for a well known soda company. The labels are made using a type of stock that when a certain temperature is applied to the paper material the label can adhere to the soda bottle. The XYZ factory has a relatively stable demand of 75 rolls of stock per week and 100 labels can be made from each roll of stock. the demand for rolls of label stock may deviate by 15 rolls each week. They have been making this stock for several years and their machinery is reliable so the risk is relatively low, thus there is no deviation of lead time - they can be relied upon to deliver in a consistent manner. It generally take the factory four days to make 630 rolls of stock and two days to deliver the stock to the customer. How many rolls of safety stock should be kept assuming they want to maintain the 95% level of customer (cycle) service? (round up answer)