A lab orders many chemicals from the same supplier with a lead time of two weeks. The
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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 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?
Related Book For
Business Logistics Supply Chain Management
ISBN: 978-0130661845
5th edition
Authors: Ronald H. Ballou
Posted Date: