Demand for walnut fudge ice cream at the Swan Ice Cream Dairy can be approximated by a normal distribution with a mean of 21 gallons per day and a standard deviation of 3.5 gallons per day. The new production manager desires a service level of 90 percent. Lead time is 2 days.
a. What ROP would be consistent with the desired service level?
b. If the manager wants to maintain 10 gallons of safety stock, what would be the corresponding stockout risk?