Consider a local club selling Christmas trees. If demand is normal with a mean of 200 and a standard deviation of 50, how many trees should the club stock if service level must be greater than 95%?
What will be an ideal response?
The Z-value for a 95% service level is 1.65; thus, ideal inventory is 200 + 50(1.65 ) = 282.5 = 283
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