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1. The injection molding department of a company that operates 24x7 uses an average of 33 gallons of special lubricant per day. The usage of lubricant is normally distributed with a standard deviation of 2.7 gallons per day and it takes 4.5 weeks for an order of lubricant to be delivered. If safety stock is set equal to 10 days of average demand, what is the reorder point? Carry answer to 4 decimal places
2. The injection molding department of a company that operates 24x7 uses an average of 35 gallons of special lubricant per day. The usage of lubricant is normally distributed with a standard deviation of 9.2 gallons per day and it takes 7.1 weeks for an order of lubricant to be delivered. If the target service level is 81%, what is the reorder point? Carry answer to 4 decimal places
3. The injection molding department of a company that operates 24x7 uses an average of 51 gallons of special lubricant per day. The usage of lubricant is normally distributed with a standard deviation of 4.6 gallons per day and it takes 1.3 weeks for an order of lubricant to be delivered. If the company can tolerate a probability of stockout equal to 4%, what is the reorder point? Carry answer to 4 decimal places.
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