A distributor's average daily customer demand is 400 units. The standard deviation of customer demand is 30 units. If the distributor would like to maintain a 98% service level (Z score = 2.05) and the supplier's lead time is 9 days, how much safety stock should be held? O 123 units O 185 units O 36,000 units O 554 units

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter10: Statistics
Section10.5: Comparing Sets Of Data
Problem 13PPS
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A distributor's average daily customer demand is 400 units. The standard deviation of customer demand is 30 units. If the distributor would like to maintain a
98% service level (Z score = 2.05) and the supplier's lead time is 9 days, how much safety stock should be held?
O 123 units
O 185 units
O 36,000 units
O 554 units
Transcribed Image Text:A distributor's average daily customer demand is 400 units. The standard deviation of customer demand is 30 units. If the distributor would like to maintain a 98% service level (Z score = 2.05) and the supplier's lead time is 9 days, how much safety stock should be held? O 123 units O 185 units O 36,000 units O 554 units
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