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    Safety Stock for Em Manufacturers

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    Em manufacturers novelty decks of cards for tourist shops. It's demand is normally distributed during the reorder period with a mean of 12 dozen boxes of cards and a standard deviation of two dozen boxes.
    (a) How many dozen boxes would ensure the desired service level and, if it is desirable to experience a stock out 10 percent of the time, and
    (b) What is the appropriate safety stock?

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    Solution Summary

    The solution discusses the appropriate safety stock for Em manufacturers novelty decks of cards.