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What are the service levels

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Reference no: EM131047064

During the winter season, the weekly demand for road salt in a small community is Normally distributed with a mean of 800 pounds and a standard deviation of 200 pounds. It takes one week lead time to get more salt delivered. To achieve a 99% service level, what should be the reorder point? What are the service levels (probability of not having a stock out) if the salt is reordered when the inventory level drops to

(a) 1200 pounds

(b) 1000 pounds

(c) 900 pounds

(d) 850 pounds

(e) 800 pounds.

Reference no: EM131047064

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