Question: A maintenance manager has implemented a system for managing the inventory of bulk oil that they use in equipment maintenance, whereby every second Monday they

A maintenance manager has implemented a system
A maintenance manager has implemented a system for managing the inventory of bulk oil that they use in equipment maintenance, whereby every second Monday they check the amount of oil on hand and order more; the replenishment order will then arrive one week later. They have determined that weekly demand averages 300 litres, with a standard deviation of 75 litres. Each litre costs $2.25, the manager wishes to be 97% sure that they don't stock out in a given order cycle. If there are 100 litres on hand on a given Monday in which they are to place an order, how many litres should they order? a. 565 b.732 C. 875 d. 1,032 e. 1,045

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