Question: Management at the CG (same as question #4) is now concern as they run out of stock too often. Having reviewed the inventory policy, CG

 Management at the CG (same as question \#4) is now concern

Management at the CG (same as question \#4) is now concern as they run out of stock too often. Having reviewed the inventory policy, CG management found that the lead-time for the buckets is 310 days, with a standard deviation of 40 buckets. Management decided on a 95% service probability for the buckets. a. How many buckets should CG carry as safety stock? [5] b. What is the appropriate reorder point? [4] Management at the CG (same as question \#4) is now concern as they run out of stock too often. Having reviewed the inventory policy, CG management found that the lead-time for the buckets is 310 days, with a standard deviation of 40 buckets. Management decided on a 95% service probability for the buckets. a. How many buckets should CG carry as safety stock? [5] b. What is the appropriate reorder point? [4]

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