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Determine the reorder point if the restaurant

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Kelly's Tavern serves Shamrock draft beer to its customers. The daily demand for beer is normally distributed, with an average of 20 litres and a standard deviation of 4 litres. The lead time required to receive an order of beer from the local distributor is 12 days.

Determine the reorder point if the restaurant wants to maintain a 90% service level. Round to 2 decimal places.?

By how much would safety stock increase if the service level increased from 90% to 95%? Round to 2 decimal places.

Reference no: EM132357923

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