Determine the reorder point if management wants a 99, Operation Management

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Determine the reorder point if management wants a 99

The injection molding department of a company uses 40 pounds of a powder a day with a standard deviation of 3 pounds. The lead time averages 5 days with a standard deviation of 2 days.

a) Determine the reorder point if management wants a 99% customer service level,

b) Based on your calculation in (a) above, how much safety stock would be carried?

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