Demand for ice cream at the Ouachita Dairy can be approximated by a normal distribution with a mean of 47 gallons per day and a standard deviation of 8 gallons per day. The new management desires a service level of 95%
Lead time is four days; the dairy is open seven days a week. What reorder point would be consistent with the desired service level?
SS = 1.65 × 8 × = 26.4 gallons; and ROP = 474. + 26.4 = 214.4 gallons.
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