Question: Quantative Methods The hardware warehouse is evaluating safety stock for its hammers. The daily demand is normally distributed with a mean if 5 units per

Quantative Methods The hardware warehouse is evaluating safety stock for its

Quantative Methods

The hardware warehouse is evaluating safety stock for its hammers. The daily demand is normally distributed with a mean if 5 units per day and a standard deviation of 2 units. It always takes exactly 3 days for the hammers to arrive. They want to maintain a 95% service level. What is the standard deviation of the demand during lead time? How much safety stock should be carried? What should the re-order point be

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