In Problem 13-27, what level of service would a safety stock of 2000 metres provide?

Problem 13-27

The amount of denim used daily by the Southwest Apparel Company in its manufacturing process to make jeans is normally distributed with an average of 4000 metres of denim and a standard deviation of 600 metres. The lead time required to receive an order of denim from the textile mill is a constant seven days. Determine the safety stock and reorder point if the company wants to limit the probability of a stock-out and work stoppage to 5%.