Question: A machine shop uses a periodic system to maintain the inventory saw blades. The review period is four days and lead time is two days.

A machine shop uses a periodic system to maintain the inventory saw blades. The review period is four days and lead time is two days. They use an average of 10 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? (You can round up) 70 blades 65 blades 61 blades 73 blades

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