Question: A company plans to sell from a single store instead of 1 6 different sales stores in a region. The demands of each store are

A company plans to sell from a single store instead of

16

different sales stores in a region. The demands of each store are independent from each other and distributed according to a normal distribution with a mean of

30

and a standard deviation of

9 .

If the lead time is

4

periods and the cycle service level is desired to be

96 %,

calculate the safety stock for the central system

(

single store situation

) ?

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