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Demands are independent across the weeks orders are placed

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Reference no: EM13477970

An industrial company requires argon gas cylinders for its work. Weekly demand is normally distributed with a mean of 35 and a standard deviation of 15. Demands are independent across weeks. Orders are placed weekly and the lead time to receive an order is 1 week. They want to hold enough cylinders to ensure a 99.75% in-stock probability. If they use an order up-to model, what base stock level should they implement? (Do not round to an integer value, i.e., leave your response in decimal form.)

Reference no: EM13477970

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