What should be the safety stock for raw milk

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Reference no: EM131874924

Question: G's Dairy is trying to determine how to manage their stock of raw milk. They have an average daily demand of 23 gallons per day, but it varies by about 6 gallons per day. Their lead time for receiving new milk is 2 days. They are striving for an 95% service level.

What should be their safety stock for raw milk? (Display your answer to two decimal places.)

What should be their reorder point? (Display your answer to two decimal places.)

Reference no: EM131874924

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