What amount of safety stock would be needed

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

Reference no: EM132193295

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