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How much safety stock should be held

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Reference no: EM132398551

Suppose that it takes 2 weeks to receive an order and Moe had determined from historical data that demand is normally distributed with mean = 2 kegs per week and standard deviation = 0.5 kegs per week. Moe is willing to accept a stockout risk of no more than 3%. What value of z is appropriate?

How much safety stock should be held?

What reorder point should be used?

Reference no: EM132398551

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