The company can tolerate probability of stockout

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Reference no: EM132173467

The injection molding department of a company that operates 24x7 uses an average of 48 gallons of special lubricant per day. The usage of lubricant is normally distributed with a standard deviation of 7.9 gallons per day and it takes 2.7 weeks for an order of lubricant to be delivered. If the company can tolerate a probability of stockout equal to 9%, what is the reorder point?

Reference no: EM132173467

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