Question: Choose the right answer: A products usage is normally distributed with average demand of 400 units/day and a weekly standard deviation of 125. The products

Choose the right answer:

A products usage is normally distributed with average demand of 400 units/day and a weekly standard deviation of 125. The products lead time is 20 days. Currently, the reorder point for this product is 8,200. The company work 5 days per week. If the company would like to have a service level of 95% for this product then

A. it must decrease its safety stock by approximately 412 units.

B. it must decrease its safety stock by approximately 212 units.

C. it must increase its safety stock by approximately 412 units.

D. it must increase its safety stock by approximately 212 units.

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