The average demand for donut is 30 units per day. It is assumed that 5 units as daily standard deviation of demand. Lead lime is 4 days but it may fluctuate with a standard deviation of 1.5 days. Service level is 90%. Calculate re-order point and safety stock 

Answer rating: 100% (QA)

The reorder point is a predetermined level of inventory when an order should be placed to replenish the stock before it runs out The reorder point cal... View the full answer