question archive QM Manufacturing Company uses an average of 40 gallons of cleaning fluid a day
QM Manufacturing Company uses an average of 40 gallons of cleaning fluid a day
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QM Manufacturing Company uses an average of 40 gallons of cleaning fluid a day. Usage tends to be normally distributed with a standard deviation of 3 gallons per day. Lead time is normally distributed averaging 7 days with a standard deviation of 3 days. The company hopes to keep the desired service level is 95 percent. What amount of safety stock is appropriate?
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