Question: Safety (Buffer )Stock Problem Assume that the mean demand for bread at your house is 125 slices per week and that the demand varies by

Safety (Buffer )Stock Problem

Assume that the mean demand for bread at your house is 125 slices per week and that the demand varies by a standard deviation of 50 slices per week.The desired service level is

99%.It takes two days to replenish the bread supply.How much safety(buffer) stock should you carry ? What is the reorder point ?

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