Share
Explore BrainMass

What is the reorder point that corresponds to 80% service level?

A depanneur stocks supplies of mineral water. Demand during lead time for cases of mineral water follows a normal distribution with a mean of 23 cases. Lead time is known to be 5 days. The standard deviation of daily demand is 2 cases. If the store manager has a policy of keeping a safety stock of 5 cases.
a) What is the service level for the current situation?
b) What is the reorder point that corresponds to 80% service level?

Solution Summary

response is attached

$2.19