Question: A lab orders many chemicals from the same supplier with a lead time of two weeks. The assistant manager of the lab must determine how
A lab orders many chemicals from the same supplier with a lead time of two weeks. The assistant manager of the lab must determine how much of one of these chemicals to order. Usage of the chemical is appropriately normal with a mean of 15 ml per week and a standard deviation of 5 ml. The lab management decides that the desired service level for this chemical is 95%. Please show your work.
a) What is the average amount of safety stock of the chemical?
b) How much chemical should he ordered?
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