A service station uses 1200 cases of oil a year ordering


A service station uses 1,200 cases of oil a year. Ordering cost is $40, and annual carrying cost is $3 per case. The station owner has specified an annual service level of 99 percent. What is the risk of a stockout during lead time? (Round your answer to 4 decimal places.) What level of safety stock is appropriate if lead time demand is normally distributed with a mean of 80 cases and a standard deviation of 5 cases? (Round your answer to 2 decimal places.)

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Operation Management: A service station uses 1200 cases of oil a year ordering
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