The Acheson Supply Company provides a full range of products for industrial construction. Acheson buys the product from its manufacturer and then resells the product to construction companies. Its products are readily replaceable, and so a stock out typically results in a lost sale. Through its history, Acheson has maintained a reputation for having things in stock. It was often the first sourcing choice of its customers because they could rely on Acheson to have what was needed. The store is open 6 days per week.
One particular type of fastener experienced fairly steady demand of 27 units per day with a standard deviation of daily demand of 5 units. The lead time for delivery is 6 days.
Suppose Acheson uses a reorder point of 170 units. What is the implied service level?