Assignment:
G's Dairy is trying to determine how to manage their stock of raw milk. They have an average daily demand of 23 gallons per day, but it varies by about 6 gallons per day. Their lead time for receiving new milk is 2 days. They are striving for an 95% service level.
- What should be their safety stock for raw milk? (Display your answer to two decimal places.)
- What should be their reorder point? (Display your answer to two decimal places.)
Provide complete and step by step solution for the question and show calculations and use formulas.