What should be the safety stock for raw milk, Operation Management

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What should be the safety stock for raw milk

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Q: G's Dairy is trying to determine how to manage their stock of raw milk. They have an average daily demand of 23 gallons per day, but it varies by about 6 gallons per day. Their lead time for receiving new milk is 2 days. They are striving for an 95% service level.

What should be their safety stock for raw milk?

What should be their reorder point?

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