Question: A products usage is normally distributed with a weekly average demand of 2,000 units and a weekly standard deviation of 125. The products lead time
A products usage is normally distributed with a weekly average demand of 2,000 units and a weekly standard deviation of 125. The products lead time is 4 weeks. Currently, the reorder point for this product is 8,200. If the company would like to have a service level of 95% for this product, then
Select one:
a. it must decrease its safety stock by approximately 212 units
b. it must increase its safety stock by approximately 212 units
c. it must increase its safety stock by approximately 412 units
d. it must decrease its safety stock by approximately 412 units
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