Determine the safety stock and reorder point if the company


The amount of denim used daily by the Southwest Apparel Company in its manufacturing process to make jeans is normally distributed with an average of 4000 yards of denim and a standard deviation of 600 yards. The lead time required to receive an order of denim from the textile mill is a constant 7 days.

1. Determine the safety stock and reorder point if the company wants to limit the probability of a stockout and work stoppage to 5%.

2. What level of service would a safety stock of 2000 yards provide?

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Operation Management: Determine the safety stock and reorder point if the company
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