What amount of safety stock is appropriate

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Reference no: EM131792009

Tulsa Gas Company uses an average of 40 gallons of cleaning fluid a day. Usage tends to be normally distributed with a standard deviation of 3 gallons per day. Lead time is normally distributed averaging 7 days with a standard deviation of 3 days. The company hopes to keep the desired service level is 95 percent. What amount of safety stock is appropriate if a fixed order size of 600 gallons is used?

Reference no: EM131792009

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