Question: Suppose the average daily demand is 20 and standard deviation of daily demand is 15. What is the optimal safety stock ( in units and

Suppose the average daily demand is 20 and standard deviation of daily demand is 15. What is the optimal safety stock (in units and in days) that they should carry to achieve a service level (in-stock probability) of 99%? Are they currently carrying the right amount of safety stock to achieve a service level of 99%?

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