Solution-What amount of safety stock is appropriate

What amount of safety stock is appropriate

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Question

A small oil change shop uses an average of 80 litres of 5W40 synthetic oil per day. Usage tends to be normally distributed with a standard deviation of 8 litres per day. Lead time is four days, and the desired service level is 92 percent.

What amount of safety stock is appropriate under each of these conditions:

1. Oil is reordered every 45 days.

2. A fixed order size of 2400 litres is used.

Reference no: EM133448667

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What amount of safety stock is appropriate

Reference no: EM133448667

Reference no: EM133448667

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