question archive A dry cleaning firm uses an average of 20 gallons of cleaning fluid a day
A dry cleaning firm uses an average of 20 gallons of cleaning fluid a day
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A dry cleaning firm uses an average of 20 gallons of cleaning fluid a day. Usage tends to be normally distributed with a standard deviation of two gallons per day. Lead time is four days, and the desired service level is 92 percent. What amount of safety stock is appropriate under each of these conditions?
A) Cleaning fluid is reordered every 45 days.
B) A fixed order size of 600 gallons is used.
