What amount of safety stock would be needed

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Reference no: EM131639017

The injection molding department of a company uses an average of 30 gallons of special lubricant a day. The supply of the lubricant is replenished when the amount on hand is 170 gal. It takes four days for an order to be delivered. Safety Stock is 50 gallons, which provides a stockout risk of 9%. What amount of safety stock would be needed if the acceptable risk is 3%. Explain.

Reference no: EM131639017

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