What should be their reorder point for raw milk

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Question - G's Dairy is trying to determine how to manage their stock of raw milk. They have an average daily demand of 41 gallons per day, but it varies by about 8 gallons per day. Their lead time for receiving new milk is 2 days. They are striving for an 92% service level.

Required -

1. What should be their safety stock for raw milk?

2. What should be their reorder point for raw milk?

Reference no: EM133108162

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