Question: problem1: A bottling plant uses approximately 3,000 plastic bottles per day (normally distributed), while daily usage has a standard deviation of 67. Order lead time

problem1: A bottling plant uses approximately 3,000 plastic bottles per day (normally distributed), while daily usage has a standard deviation of 67. Order lead time is 2 days (constant).

Consider the plastic bottles demand pattern from Problem 1. Suppose we plan to set up a periodic review inventory system instead, and we will order this item every 9 days. Order lead time is still the same as in Problem 1.

Using this periodic review system, what order up to level (T) would result in 100 units of safety stock?

What is the predicted service level under this safety stock value?

What order up to level is needed to provide 99% predicted service level? How much safety stock is associated with this policy?

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