Compute the safety stock required to achieve a 98% service level

A bakery uses an average of 60 ounces of organic orange juice daily. Demand is normally distributed with a standard deviation of 15 ounces. The bakery places orders every seven days. The lead time for delivery of the juice is three days.

Answer: 97 ounces

Business

You might also like to view...

A survey of CEOs indicated that creativity and innovation have only a small relationship to a company's ability to survive

Indicate whether the statement is true or false

Business

What is the main problem associated with defined benefits plans?

A) lack of employer matching B) lack of portability C) highly regulated D) highly taxed

Business