Question: 10. An inventory ordering system must be set up for Ointment CX-30 based on the following data (assume the normal distribution): a. What safety stock

10. An inventory ordering system must be set up for Ointment CX-30 based on the following data (assume the normal distribution):

a. What safety stock would you recommend if a stockout risk of 10% is considered acceptable?

b. What safety stock would you recommend if a stockout risk of 5% is considered acceptable?

c. What is the reorder point for a service level of 98%?

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