Question: Use the data below to answer the question below. Average daily demand 325 cases per day Standard deviation of daily 95 cases per day

Use the data below to answer the question below. Average daily demand 325 cases per day Standard deviation of daily 95 cases per day demand Average Lead Time Inventory holding cost Purchase Price Order Cost Stockout Cost Desired Service Level Assume the company operates 365 days per year 2 days 20% of the item's value per year $50 per case $10 per order $35 per case 80% You look back at historical data and find that lead time is not constant but is variable with an average of 2 days. What should the reorder point be set at to meet the desired service level if the standard deviation of lead time was found to be 0.5 days and the z-score for a service level of 80% is 0.84?

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