Kelly’s Tavern serves Shamrock draft beer to its customers.The daily demand for beer is normally distributed, with anaverage of 20 gallons and a standard deviation of 4 gallons.The lead time required to receive an order of beer from thelocal distributor is 12 days. Determine the safety stock andreorder point if the restaurant wants to maintain a 90% service level. What would be the increase in the safety stock ifa 95% service level were desired?

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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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 gallons and a standard deviation of 4 gallons.
The lead time required to receive an order of beer from the
local distributor is 12 days. Determine the safety stock and
reorder point if the restaurant wants to maintain a 90% service level. What would be the increase in the safety stock if
a 95% service level were desired?

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