Question: You calculate that your time between orders for can labels in a periodic review inventory should be set at 20 days. Your lead time for

You calculate that your time between orders for can labels in a periodic review inventory should be set at 20 days. Your lead time for this item is 5 days and your supplier has shown no variation in lead time. The average demand for labels is 240 per day with a standard deviation of 30 labels per day. What safety stock should you set for labels in a periodic review inventory system to maintain a service level of 97% Assume the z-score for a service level of 97% is 1.88

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