The injection molding department of a company that operates 24/7 and uses an average of 28 gallons of special lubricant per day. The usage of the lubricant is normally distributed with a standard deviation of 4 gallons per day and it takes two weeks for an order of lubricant to be delivered.
If safety stock is set equal to three days of average demand, what is the reorder point?
If the company wants a service level of 89%, what is the reorder point?