The brothers who go to Mother\'s, a new venture of Block C Enterprises, have exp

Question

The brothers who go to Mother's, a new venture of Block C Enterprises, have expressed a strong preference for Rheingold pilsner to the extent that Mothers believes that they must be able to satisfy demand essentially all of the time. Demand details are shown below Daily demand = Std Deviation of demand = Lead time = Std Deviation of lead time Customer service level 80 bottles 20 bottles 2 days 99.5% Calculate the safety stock for the Rheingold pilsner 334 bottles 378 bottles 418 bottles 470 botlles 496 bottles 520 bottles 562 bottles 622 bolties

Explanation / Answer

Where Service Level Given is 99.5%

Standard Deviation of Lead time is 2 days

Safety Stock Formula = Service Level * Standard Deviation of Lead Time * Demand Average

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