Question: ) An auto supply store's average daily demand for its best-selling motor oil is 25 cases. The demand is normally distributed with a standard deviation

 ) An auto supply store's average daily demand for its best-selling

) An auto supply store's average daily demand for its best-selling motor oil is 25 cases. The demand is normally distributed with a standard deviation of five cases per day. The lead time for restocking cases of oil from a wholesale distributor is three days. He store would like to maintain a 97 % service level. A. What is the reorder point equal to? B. How many units of safety stock will be held on average

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!