Demand for motors at the Ouachita Manufacturing plant in Phoenix, AZ can be approximated by a normal distribution with a mean of 47 units per day and a standard deviation of 8 motors per day. Ouachita management desires a service level of 95%. Lead time from supplier is four days; the company operates seven days a week throughout the year.
a. What reorder point would be consistent with the desired service level?
b. What is the size of the safety stock?