Question: A machine shop uses a periodic system to maintain the inventory saw blades. The review period is four days and the lead time is two
A machine shop uses a periodic system to maintain the inventory saw blades. The review period is four days and the lead time is two days. They use an average of 11 saw blades per day. The standard deviation of use over a six-day period is 5 saw blades. Saw blades aren't the most critical item they carry, but the manager would like to limit the probability of a stockout to 2.5% of the time. What should their restocking level be?
76 blades
71 blades
67 blades
79 blades
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