The daily demand for beer is assumed to follow a normal


A local bar serves a premium draft beer to its customers. The daily demand for beer is assumed to follow a normal distribution with a mean of 80 litres and a standard deviation of 16 litres. The lead time required to receive an order of beer from the local distributor is 12 days. a. Determine the safety stock and reorder point if the bar wants to maintain a 90% service level. b. What would be the increase in the safety stock if a 95% service level is desired? c. If the manager decides to set the safety stock to be 80 litres, what will be service level?

Request for Solution File

Ask an Expert for Answer!!
Operation Management: The daily demand for beer is assumed to follow a normal
Reference No:- TGS02906112

Expected delivery within 24 Hours