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