Problem $7-18($Algo$)$

Suppose you are a corporate buyer. One of your suppliers delivers a particular part in $14$ days on average, with a standard deviation of

The daily usage averages $27$ units per day with a standard deviation of $3.$ Use Table $7-2.$

a$.$ What is the standard deviation of demand during lead time?

b$.$ If you use a continuous review policy, how much safety stock would you want on hand to ensure at least $95$ percent availability of

the part while waiting for replenishment?

Complete this question by entering your answers in the tabs below.

What is the standard deviation of demand during lead time?

Note: Round your answer to $2$ decimal places. Please do A$,$B$,$ C$,$ D$,$ E