They review their inventory and place orders each and every

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Radio Shack sells the same 32GB flash drive on their e-commerce site which has a single distribution center. Daily demand at their e-commerce DC is forecasted to be normally distributed with a mean of 150 and a standard deviation of 75. The lead time to receive a replenishment at the distribution center from their supplier is 2 days.

They review their inventory and place orders every two days, on the same day that they receive deliveries of new inventory. They operate 7 days a week. If they were to implement an order upto model, what base stock level should they choose for the DC if they want to achieve a 99.3% in-stock probability? (Leave your answer in decimal form, i.e., no need to round to an integer value.)

Reference no: EM13477974

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