What is the safety stock

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A vendor sells on average 100 bottles of water per day with a standard deviation of 25. He reviews inventory every Friday and places a replenishment order Friday evening. New bottles arrive before the business is open on Monday. The vendor wishes to maintain a 99% service level.

1. What should be his order-to to level S?

2. What is the safety stock?

3. Plot safety stock vs service level (safety stock as a function of service level changes)

Reference no: EM132298254

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